Comcast: Q1 2021 Was Another Step In Long-Term Compounding (Preview)

Company Update (CMCSA US) (Buy)

Summary

• Comcast delivered strong Q1 2021 results that support our belief in a multi-year compounding story.

• Cable Communications EBITDA grew 12.4%; 2021 is expected to be the second-best year for more than a decade for Broadband net adds.

• NBC Universal EBITDA has stabilized; early signs for the Theme Park business after COVID and for the Peacock streaming service are good.

• Sky revenues are already higher year on year, and management still believes EBITDA can be doubled over the next few years.

• With shares at $58.11, we expect an exit price of $78 and a total return of 43% (10.7% annualized) by 2024, in just under 4 years. Buy

Why Is Comcast Stock Going Up?

Comcast released its Q1 2021 results on April 29. Comcast stock rose 4.3% that day and has now risen 7.4% higher than before results.

We originally initiated a Buy rating on Comcast stock in January 2020 and reiterated it through 2020 and 2021. Since our initiation, Comcast shares have gained 33.2% (including dividends) in 16 months.

We beli…