Scotiabank upgrades Comcast with broadband losses on ‘controllable path’

Scotiabank last night upgraded Comcast (CMCSA) to Outperform from Sector Perform with a price target of $48, up from $47.75. Comcast’s domestic broadband losses were better than consensus expectations in Q3, highlighting seasonal tailwinds of back to school as well one-time factors, such as higher viewership from Paris Olympics, the analyst tells investors in a research note. The firm sees the company potential spinning off of the cable network business as unlocking around $5 per share, noting investors “prefer pure play stocks.” Given that it expects Comcast’s broadband losses to be on a “more controllable path going forward,” coupled with an attractive valuation and a growing free cash flow profile in 2025, Scotiabank upgraded the shares.