Comcast Corp (CMCSA) is facing a rough stretch, and Rosenblatt Securities is adjusting expectations accordingly. Analyst Barton Crockett lowered his price target on the cable and media giant from $33 to $30 while maintaining a Neutral rating, citing pressure from the company's latest quarterly results.
The Revenue Challenge
The core issue revolves around average revenue per user in Comcast's Connectivity & Platforms division. Crockett expects ARPU to take a hit from "the transition to simpler broadband packaging," along with the company's promotional strategy of offering free wireless service for 12 months when customers add broadband. Throw in competitive pressures across the broadband market, and you've got a recipe for near-term revenue headwinds.
Lower Numbers Across the Board
Crockett slashed his revenue estimates for multiple periods. Fourth quarter expectations dropped from $32.90 billion to $32.66 billion, full year 2025 projections increased slightly from $123.81 billion to $124.06 billion, and the 2026 forecast fell from $128.88 billion to $127.20 billion.
A Silver Lining for 2027?
Despite the near-term pressure, Crockett sees potential upside ahead. "There is an opportunity for 2027E to have better growth from the reset base, including the roll-off of free wireless and resumption of regular price hikes from a lower base," he wrote.
Comcast shares have tumbled 29% year-to-date and are "trading at a trough EV/EBITDA multiple," according to Crockett. The stock edged up 0.17% to $26.74 on Monday.
