Comcast (NASDAQ:CMCSA) stock rose 1.98% in the pre-market trading session at 8:35 AM ET today. The stock rose after Bernstein analyst Peter Supino upgraded the stock to “outperform” from “market perform.” The analyst also increased its target price on the stock from $48 to $52. Supino suggested to spin out NBC Universal and Sky brands.
According to a report from TheFly, “The analyst published an open letter to Chairman and CEO Brian Roberts arguing that Comcast’s current strategy in media is one of incrementalism, and that now is a time for boldness. The bold move Supino supports is a spin-out of NBC Universal/Sky.” The report also said, “To sustain the status quo is version of boiling a frog, and we believe this team is too smart, too competitive, and too invested to oversee that, says the analyst. He sees a path to over $4 of adjusted earnings per share and a $60-plus stock in three years.”
On Tuesday, Comcast stock gained 0.1% and closed at $38.98 with a market cap of $177.9 billion. Comcast’s stock price has fallen by 0.6% in the trailing five-day period, while it has fallen by 7.8% in the trailing 12-month period. The stock is trading 18.4% below its 52-week high of $47.74 on January 17. The stock was also trading 23.0% above its 52-week low of $31.71 on March 23. On a year-to-date basis, the stock has declined by 13.3% as of Tuesday.
Analysts’ recommendations for Comcast Stock
Among the 37 analysts following Comcast stock, six recommend a “strong buy,” 19 recommend a “buy,” and 12 recommend a “hold.” None of the analysts suggest to “sell” the stock. Analysts have an average target price of $45.23 on Comcast. The target price implies a return of 16% based on the closing price of $38.98 on Tuesday. The consensus target price for the stock has risen from $44.71 in June—a growth of 1.2%.
Growth projections for Comcast
Comcast’s first-quarter adjusted EPS fell 6.6% YoY (year-over-year) to $0.71. The adjusted EPS beat analysts’ consensus expectation of $0.68. Comcast reported sales of $26.6 billion—a reduction of 0.9% from the same quarter a year ago. The company missed analysts’ consensus revenue expectation of $26.75 billion.
Wall Street analysts expect Comcast to post sales of $23.5 billion in the second quarter of 2020. The figure would mark a fall of 12.4% YoY compared to $26.86 billion in the second quarter of 2019. Also, analysts expect the company to post an adjusted EPS of $0.54 in the second quarter of 2020 compared to $0.78 in the same quarter last year. Currently, analysts expect -6.0% and 8.3% growth in the company’s 2020 and 2021 sales, respectively. Meanwhile, they expect an adjusted EPS of $2.33 and $2.93 in 2020 and 2021, respectively.
Based on the closing price on Tuesday, Comcast stock was trading 2.2% below its 20-day moving average of $39.86. The stock is also trading 1.1% above its 50-day moving average of $38.56 and 0.4% above its 100-day moving average of $38.82. Comcast’s 14-day MACD is 0.11, which indicates an upward trading pattern. With a 14-day relative strength index score of 48, the stock isn’t overbought or oversold.
Comcast stock has an upper Bollinger Band level of $42.68, while its lower Bollinger Band level is $37.19. On Tuesday, the stock closed near its middle Bollinger Band level of $39.94, which suggests that the stock isn’t overbought or oversold.
On Tuesday, AT&T (NYSE:T) and Charter Communications (NASDAQ:CHTR) stocks returned 1.1% and 0.2%, respectively. AT&T and Charter Communications’ target prices suggest potential returns of 11.5% and 11.2%, respectively.
On the same day, the Dow Jones Industrial Average and the S&P 500 rose 0.85% and 1.54%, respectively.