Scotiabank Previews Comcast Earnings: Top Pick, Recommends "Staying Course"

Scotiabank provided color on Comcast CMCSA and previewed the company's earnings announcement, scheduled for August 1 before market open, in a research report published Friday morning. In the report, Scotiabank stated, "CMCSA has been our top pick, and we recommend staying the course for the following reasons: (1) improving video and total subscriber trends: we raised our subscriber forecasts for 2012-2014; (2) broadband and business segments share gains, which contribute over 75% of cable revenue growth; (3) scale in content and technology to generate stable margins and lower capex intensity that should result in our estimate of 5% cable EBITDA growth and 9% FCF growth in 2012; (4) disciplined shareholder returns and sustainable 40% dividend growth; and (5) attractive valuation with room for further expansion." Shares of Comcast were trading at $31.55 at the time of posting, up 0.32% from Thursday's market close.