Brean Reviews Comcast's Earnings

In a report published Tuesday, analysts at Brean Capital maintained their Buy rating on

, while raising the price target from $65 to $67. The stock is an attractive long term option in the MCVP arena. The company has reported strong 1Q15 results, driven by its core cable segment and NBCU. "Comcast has a strong service profile, best in class technology, and unrivaled economies of scale in its core Cable business. Moreover, NBCU is finally getting its house in order with strong trends at the Broadcast Network and Theme Parks," the analysts stated. The company posted its total revenue, OCF and EPS for the quarter ahead of the consensus. Increase in capital expenditure during Q1 was mitigated by growth in cash flows from operations. The outperformance was mainly driven by the 14 percent growth in OCF at NBCU. In addition, the cable division reported 6 percent growth in revenue. Although the company has indicated that its capital intensity is likely to rise, the analysts believe that given Comcast's robust balance sheet, the company would be able to deliver growth "while funding its aggressive capital return program." Brean Capital expects Comcast to deliver a 5 percent increase in total revenues for FY15, with a 6 percent rise in OCF and EPS of $3.35. The analysts also expect NBCU to witness growth through 2015.