UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Comcast Corporation on Announced NBCU Purchase
In a report published Wednesday, Bank of America reiterated Buy rating on Comcast Corporation (NASDAQ: CMCSA), and raised its price target from $48.00 to $57.00.
Bank of America noted, “In a surprise (early) transaction and what we consider a valuation ‘steal,' Comcast announced (along with 4Q'12 earnings) the acquisition of the remaining 49% of NBCU from GE, for ~$16.7bn, implying a (low) 9.0x multiple on 2013E EBITDA. Comcast is paying essentially the equivalent to what it paid for half of the asset two years ago, despite ~24 months of op. turnaround, we believe the asset is worth more, and there is clearly value in owning 100% of an improving business. Comcast is also acquiring $1.4bn in GE-owned real-estate, including the iconic ‘30-Rock' HQ and CNBC's New Jersey location.”
Comcast Corporation closed on Tuesday at $38.97.
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