By Senad Karaahmetovic
Comcast shares (NASDAQ:CMCSA) are down over 1% in premarket Friday after dipping more than 7% a day earlier, following the weak Q2 results.
Slowing weak broadband trends have prompted at least three Wall Street analysts to downgrade CMCSA stock today.
A JPMorgan analyst moved to Neutral from Overweight with a price target of $45, down from the prior $52. The analyst said Q2 results “were mixed” with the lowered price target reflecting lower cable estimates.
“With weaker 2Q22 FCF, as well as higher working capital drag and “total capital” in 2H vs our prior estimates, we lower our 2022 FCF estimate to $13.2b from $14.9b for the year, and lower 2023 to $13.7b – an 8.3% 2023 yield on today’s price,” the analyst explained in a client note.
A Macquarie analyst cut the rating on CMCSA stock as he went to Underperform from Neutral. He sees deteriorating “near-term trends” in most business segments, “led by Cable broadband subs and NBCU revenue, while competition has increased and investment cost trends are not going to ease.”
The analyst is especially concerned about “the specter of fixed wireless access competition.” Although the analyst continues to admire certain aspects of Comcast’s business, he simply “cannot ignore the near-term pressures.”
The analyst has a $33 per share price target on CMCSA.
A Wolfe Research analyst downgraded Comcast shares to Underperform from Peer-perform with a $39 per share price target.