Nomura Securities Maintains a 'Buy' on Comcast Corp (CMCSA); Dissecting Weakness in the NBC Broadcast Segment

Nomura Securities maintains a 'Buy' on Comcast Corp (NASDAQ: CMCSA) price target of $32.00.

Nomura analyst, Mike McCormack, said, "Comcast's cable metrics have outperformed Time Warner Cable (NYSE: TWC) for numerous quarters. In order to sustain the premium relative valuation, we believe that the company will need to deliver on investor expectations for capital returns, as well as navigate a growing NBC Broadcast problem. We are increasingly concerned over the developing trends in the Broadcast segment, even though the segment is very small. The ownership of a broadcast network is inherently high profile and could be a drag on management focus. Comcast shareholders already receive ~65% of cable-only FCF in the form of share repurchases and dividends. Should Comcast increase its leverage profile to the mid-point of the targeted range, we believe investors could contemplate $4bn- $5bn on incremental capital returns."

For more ratings news on Comcast Corp click here and for the rating history of Comcast Corp click here.

Shares of Comcast Corp closed at $23.78 yesterday.

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