Benchmark Reiterates Buy Rating on Comcast Corp (CMCSA)

Benchmark analyst Matthew Harrigan reiterated a Buy rating and $48.00 price target on Comcast Corp (NASDAQ: CMCSA).

The analyst commented, "We reiterate a BUY rating and $48 Comcast price target even as improved 2H25 Xfinity performance should complement across-the-board NBCUniversal momentum in alleviating the stock’s chronic sum-of-the-parts discount. Yesterday, NBCUniversal not surprisingly announced a near 40% price increase on Peacock’s AVOD version and 20% on its original SVOD iteration. Starting next Wednesday, Peacock Premium Plus – largely sans advertising apart from live sports programming will increase its monthly price by $3 to $16.99 while its flagship AVOD offering will increase from $7.99 to $10.99. Current subscribers will see the new billing rates starting on August 22nd. This follows a $2 July 2024 hike preceding the Paris Olympics although Peacock had held pricing relatively flat since it debuted in April 2020. A new $7.99 Select tier delivers next day NBC and Bravo program access and library but has no originals, no NBC Sports and no movie premieres. Peacock continues to gather momentum with high profile originals including Poker Face, especially pop culture favorite Love Island and Dr. Death with NBA games airing in the coming 2025-2026 season. Applying the $763M in 1Q25 Peacock distribution revenues, even a realized 25% blended increase after adjustment for mix flux and distributor deals such as with Charter would generate over $800M in annual revenues even at the 41M 3.31.25 subscriber level. This should carry near full drop through to EBITDA. Last week NBCU also indicated that Peacock generated a 20% increase in upfront volume and now represents nearly one-third of NBCUniversal’s new season commitments."

For an analyst ratings summary and ratings history on Comcast Corp click here. For more ratings news on Comcast Corp click here.

Shares of Comcast Corp closed at $34.70 yesterday.

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