Comcast Gets a Buy Rating from Pivotal Research

By Ryan Adsit

In a report released yesterday, Jeffrey Wlodarczak from Pivotal Research reiterated a Buy rating on Comcast (NASDAQ: CMCSA), with a price target of $48. The company’s shares opened today at $39.51.

Wlodarczak said:

“We continue to expect Comcast to produce solid ’17 results [including overall ~+7.6% (up from +7.5%) EBITDA growth], against the backdrop of one-off high cable programming costs and tougher ad comps (political and Olympics in ‘16), however ’18 is teeing up to see a material acceleration in cable EBITDA and overall free cash flow. This acceleration should be driven by: 1) normalization of cable programming expense growth, 2) high margin political advertising returns + NBC Olympic benefits, 3) benefits from investments, 4) forecast flattish capex (winding down of X1/move to networked), 5) potentially boosted by tax relief. We also believe in ’18 on the back of the acceleration in EBITDA and free cash flow Comcast will elect to increase their dividend and accelerate share repurchase activity materially, alternatively we would not be surprised to see Comcast purchase private player Cox providing some M&A upside in the name. Against what we view as a positive back drop, CMCSA trades at an attractive 8.3X ’17 EBITDA (7.6X ’18), 15.3X ’18 free cash flow and 15X ’18 EPS.”

According to, Wlodarczak is a 4-star analyst with an average return of 11.0% and a 76.3% success rate. Wlodarczak covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Liberty Global PLC LiLAC Class A, and Charter Communications.

Comcast has an analyst consensus of Strong Buy, with a price target consensus of $44.58.

The company has a one year high of $42.18 and a one year low of $30.02. Currently, Comcast has an average volume of 17.91M.

Based on the recent corporate insider activity of 94 insiders, corporate insider sentiment is negative on the stock.

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