Comcast Faces Broadband Headwinds, Analyst Downgrades Stock And Cuts Price Forecast

Scotiabank analyst Maher Yaghi downgraded Comcast Corp (NASDAQ:CMCSA) from Sector Outperform to Sector Perform and lowered the price target from $48 to $44.50.

Comcast announced a new strategy to capitalize on the increasing demands for convergence, with a goal of boosting its current 12% wireless/broadband penetration.

In 2025, the company plans to push harder by packaging mobile services with higher-tier broadband products.

Also Read: Comcast Q4 Earnings Beat Estimates: Peacock Subscribers Surge 29%, Dividend Raised, $15 Billion Buyback Approved

New and select existing broadband customers picking internet speeds of 300MB or higher will receive a free wireless line. While Yaghi noted this could dilute ARPUs, management is optimistic that broadband ARPU growth will remain healthy in 2025. Additionally, the company highlighted a continued focus on network upgrades to support more potent, integrated products across mobile and broadband. Management emphasized offering simplified bundles and pricing structures, a previous pain point, for new and existing customers.

Comcast reported 139K in domestic broadband losses during the quarter (versus -34K previous year), worse than Yaghi’s -105K and consensus of -95K. As management highlighted in the previous quarter, weak loading was ...

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