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…