Wunderlich Securities Offers Thoughts on How Comcast Will Be Affected by Netflix Deal

In a report published Monday, Wunderlich Securities analyst Matthew Harrigan reiterated a Buy rating and $65.00 price target on Comcast CMCSA. In the report, Wunderlich Securities noted, “Buy-rated Comcast (CMCSA) and Netflix (NFLR-NR) have reportedly reached a multi-year deal for proximate access to Comcast's broadband network to foster better speed and QoS for its video streaming customers, with Netflix paying an undisclosed amount for distribution. Netflix is currently largely connected to Comcast through Cogent Communications (CCOI-NR). However, Netflix will not get preferential treatment and Netflix's familiar Open Connect content caching ‘boxes' (servers) will not be used. The arrangement is at least somewhat net neutrality friendly, while recognizing that Comcast and other large broadband providers have to have some economic skin. This may also make Netflix a less vociferous antagonist to Comcast's proposed merger with Time Warner Cable (TWC-$140.54, Hold).” Comcast Corporation closed on Friday at $51.05.