Comcast: Q3 Results & Omicron Correction Mark The Bottom
(Preview) Company Update (CMCSA US) (Buy)
Summary
Comcast stock has lost 20% in 3 months, first due to investor concerns on Q3 Broadband net adds then as part of the Omicron correction.
We believe the core Cable business will continue to grow structurally, and the recent deceleration was due to temporary external factors.
NBC Universal financials are more volatile, but Theme Parks have been recovering strongly and Media's P&L is stable excluding Peacock.
Sky's Q3 EBITDA grew more than 70% both year-on-year and from Q2. Leverage is back to target level, enabling more return of capital.
With Comcast shares at $49.98, we expect a total return of 67% (18.8% annualized) by 2024 year-end. The Dividend Yield is 2.0%. Buy
Introduction
We review our investment case on Comcastafter shares fell below $50 for the first time since January 2021.
We initiated our Buy rating on Comcast in January 2020. Since then, shares have returned 15.5% (including dividends), but have lost 2.7% year-to-date.
Comcast shares were strong up to early September, with…