Collins Stewart Downgrades Comcast (CMCSA) to Hold; Medium-Term Growth Prospects Appear Lower Than Expected
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Collins Stewart downgrades Comcast (Nasdaq: CMCSA) from Buy to Hold.
Collins analyst says, "We are lowering our rating on CMCSA to Hold for two reasons: 1) medium-term growth prospects appear lower than we expected, and 2) we anticipate the stock will be range-bound for much of 2010 due to the overhang of an NBCU deal."
"We expect CMCSA's current focus to grow RGUs at the expense of OCF will continue into 2010. Accordingly, we are increasing our estimates for 2010 digital, data and phone subs, and decreasing our estimates for 2010 OCF. Our 2010 Cable EBITDA declines from $14,312mm to $14,191mm, or from a 3.7% growth rate to a 3.1% growth rate...Although there are several businesses (such as Business Services and Cable advertising) within Comcast that should generate significant revenue growth in 2010, they are unlikely to meaningfully impact total revenue. Even a doubling of the combined revenue growth rate (over 2009) is likely to generate revenue growth flat with 2009. These businesses will, however, contribute meaningfully in 2011."
To see more analyst ratings on CMCSA Click Here.
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