Wunderlich Securities Sees Upward Risk for Comcast in Possible Deal with Charter Communications

In a report published Wednesday, Wunderlich Securities analyst Matthew Harrigan reiterated a Buy rating and $65.00 price target on Comcast CMCSA. In the report, Wunderlich Securities noted, “Various media outlets, including Reuters and The Wall Street Journal, reported last night that Buy-rated Comcast Corporation (CMCSA) may imminently reach an agreement with rival Charter Communications (CHTR-$126.96, Buy) that would flash its sincerity for trimming off some customers. (This should help advance the Time Warner Cable (TWC-$138.43, Hold) merger process in Washington). Specifically, the adumbrated terms would allow Charter to acquire 1.5mm customers outright as well as a 40% interest in a new publicly traded cable MSO (Multiple System Operator). "(All this is tentative with privately held Cox Communications and private equity also likely lurking). We have also made first pass revisions to our Comcast model that actually suggest upward risk to our premerger $65 price target.” Comcast closed on Tuesday at $50.83.