Comcast (CMCSA) PT Lifted to $70 at UBS Post Q2

UBS analyst John Hodulik boosted his price target on Buy-rated Comcast Corp (NASDAQ: CMCSA) to $70.00 (from $66.00), noting the company's investments will sustain the growth trajectory.

Hodulik commented, "2Q results were strong on both the cable and content sides of the house. Comcast cut video sub losses in half, the best 2Q result in 9 years, due to further X1 adoption and lower churn across all product categories. Meanwhile Film/Theme Parks remained the highlights of NBCU results with the release of Furious 7/Jurassic World (the 4th and 5th highest grossing films of all-time) and sustained success of Harry Potter Orlando."

The analyst said X1/customer service investment should support better sub trends/margins long-term. "The company is now adding 30K X1 boxes/day with penetration estimated at ~20% of basic subs (expected to grow to 50%+ by YE16)," Hodulik commented. "We believe the X1 roll out is attracting higher quality subs as it represents 50%+ of new connects."

For an analyst ratings summary and ratings history on Comcast Corp click here. For more ratings news on Comcast Corp click here.

Shares of Comcast Corp closed at $62.47 yesterday.

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