UPDATE: Wunderlich Securities Reiterates Buy Rating, Raises PT on Comcast Corporation on Announced NBCU Purchase
In a report published Wednesday, Wunderlich Securities reiterated its Buy rating on Comcast Corporation (NASDAQ: CMCSA), and raised its price target from $44.00 to $47.00.
Wunderlich Securities noted, “We are raising our price target on Buy-rated Comcast (CMCSA) to $47 from $44 off what we view as a mispriced (from General Electric's [GE-NR] vantage point) deal in selling its residual 49% NBCUniversal interest to Comcast for only $16.7bn - circa $39bn implied entity value with debt. (Comcast is also buying Rockefeller Center and Englewood, NJ real estate for $1.4bn.) Concurrent with the purchase and early strong Q4 results, Comcast also announced that it would repurchase $2bn in stock in 2013 and that it is raising its annual dividend 20% to $0.78 per share. We expect Comcast to remain very conservative on buybacks, but it now has ample flexibility with an estimated $43.4bn in 12.31.13 net debt against $21.2bn in estimated EBITDA.”
Comcast Corporation closed on Tuesday at $38.97.
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