Oppenheimer Thinks Comcast’s Stock is Going to Recover

By Ryan Adsit

Oppenheimer analyst Timothy Horan maintained a Buy rating on Comcast (NASDAQ: CMCSA) today and set a price target of $42. The company’s shares closed yesterday at $32.32, close to its 52-week low of $30.43.

Horan commented:

“CMCSA has bid $65 billion for a cash offer for Fox’s entertainment assets, a 19% premium to Disney’s offer, and 16x pre-synergy EBITDA, 12x post. This has hit Comcast’s stock hard and we expect a 10% bump in price. Ironically, it does make strategic/financial sense, and Comcast has a great track record on acquisitions. We think a joint NBC/Fox would be a content powerhouse while expanding the company’s presence in and slashing OTT video risk. Leverage would be 3.9x EBITDA, declining to 2.9x within three years.”

According to TipRanks.com, Horan is a top 100 analyst with an average return of 16.2% and a 73.3% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Zayo Group Holdings.

Currently, the analyst consensus on Comcast is Moderate Buy and the average price target is $48.86, representing a 51.2% upside.

In a report issued on June 7, Jefferies also initiated coverage with a Buy rating on the stock with a $41 price target.

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Comcast’s market cap is currently $149.2B and has a P/E ratio of 6.60. The company has a Price to Book ratio of 2.15.

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