Comcast (CMCSA) Pullback Creates Attractive Entry, Says Goldman Sachs

Goldman Sachs reiterated a Buy rating on Comcast Corp (NASDAQ: CMCSA) with a price target of $65. Analyst Brett Feldman views the recent pullback as an opportunity.

"We believe this pullback represents an attractive entry point for two reasons. (1) CMCSA’s current business practices largely align with the proposed rules, in our view, suggesting minimal near/medium term disruption to its operations. (2) We believe that CMCSA’s current valuation reflects a multiple for its cable business in-line with that of regulated phone companies," said Feldman.

"For example, if we assume that NBCU is valued roughly in-line with large-cap media peers (approximately 10x 2015E EBITDA), then the implied valuation of CMCSA’s cable business, which is the segment that would be subject to Title II, is being valued at 6.4x 2015E EBITDA. This is slightly below the average valuation (6.6x 2015E) of regulated large-cap telecom operators (AT&T, CenturyLink, Frontier, Verizon and Windstream). In other words, we believe the key long-term risk of any ‘regulatory creep’ under Title II is already captured in CMCSA’s share price," he added.

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 $52.96 yesterday.

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