Wunderlich Recommends To 'Aggressively Add' Comcast On Sell-Off

• The share price of Comcast Corporation CMCSA has declined 9.78 percent since August 19.
• Wunderlich’s Matthew Harrigan maintained a Buy rating and $72 price target on Comcast.
• Harrigan recommends aggressively adding positions on the stock if the sell-off persists, driven by the “media fixation” on cord cutting.

The media focus on cord cutting has obscured the best Q2 results posted for cable broadband and video activity since 2008.

“Cable's overall architecture value should be augmented by small cell wireless topologies, 4K video, and the advent of applications that deliver upside from imminently higher DOCSIS 3.1 broadband speeds,” according to the Wunderlich report.

Harrigan believes that the latter could also include the gradual adoption of the online facets of Virtual Reality among gamers and other users. “Comcast's X1 deployments and the halo from a superior-in-bundle-broadband product should dampen any long-term losses,” the report stated.

VP of network architecture at Comcast, Robert Howald, indicated that DOCSIS 3.1 higher speed broadband technology is likely to be deployed throughout footprint over the next 2-3 years. While Harrigan believes that 1 Gbps speeds can be achieved through the current plant, he expects cable plants to be upgraded to eventually enable speeds of 10 Gbps.

The company is engaged in various new business initiatives, which Harrigan expects to be accretive to the stock valuation.

“We believe that Comcast and other cable companies are discretely testing handsets that can jump between Wi-Fi signals and equally as important utilize LTE in areas where there is no Wi-Fi signal,” Harrigan added.