Market Overview

UPDATE: Brean Capital Reiterates On Comcast On Potential Significant Value Creation

Related CMCSA
What's Next As More Consumers Shift From Cable TV To The Internet?
Pacific Crest Comments on Twitter, LinkedIn And More Amid Vail Tech Forum
Media Mega Merger: Will Time Warner, Fox Join Forces? (Fox Business)

In a report published Wednesday, Brean Capital analyst Todd Mitchell reiterated a Buy rating on Comcast (NASDAQ: CMCSA), and raised the price target from $60.00 to $65.00.

In the report, Brean Capital noted, “We believe that the acquisition of Time Warner Cable (TWC $149.31, Buy) will create far greater synergies than what has been publicly discussed by either company. Comcast was a far better run company than TWC and NBCU appears to be in a structural renewal from prior underperformance.

"We foresee multi-billion opportunities for the combined company to create value in 1) raising TWC's residential metrics to the level of Comcast's, 2) combining the companies' highly complementary enterprise businesses, 3) a potential entrée into wireless via the formation of an MVNO, and 4) leveraging the two companies' national footprint to drive innovation into advertising. As a result, we are raising our target price on CMCSA to $65 from $60, which is based on 8.5x pro forma 2014E EV/EBITDA, and we reiterate our BUY rating.”

Comcast closed on Tuesday at $54.89.

Posted-In: Brean Capital Todd MitchellAnalyst Color Price Target Analyst Ratings

 

Related Articles (CMCSA)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters