While communications giant Comcast (CMCSA) is perhaps best known for its internet and linear television options, it is actually a major presence in theme parks thanks to its Universal arm. And to that end, it plans to open another Universal theme park in Bedford, United Kingdom, to open in 2031. The news was cautiously welcomed by investors, as shares notched up fractionally in Wednesday afternoon’s trading.
Reports suggest that the new park will cover several acres and represent the first resort complex the company has in Europe. It will use the “several themed lands” concept that it has in other places—a Harry Potter-themed area is all but a certainty—and will boast a 500-room hotel along with retail options, dining areas and a complete entertainment venue. Construction will start next year assuming the plans are approved by local regulators.
Approval is likely to go through, especially as the park will mean around 28,000 jobs for the area, as well as a boost of 50 million pounds (US$63.92 million) to the economy. While some might think it is a bad idea to engage in a major construction project now, when the environment is so uncertain, the environment in 2031 will likely be much different.
New Sheriff in Town
Meanwhile, Comcast knows it needs to pursue growth, and to that end, it has a new chief growth officer in Jon Gieselman. Gieselman will handle a large portion of Xfinity’s branding, but that is not all. Gieselman reportedly will have responsibility for sales and marketing, customer acquisition, customer retention and “base management,” which is so many hats at once that one wonders how well he will do at keeping them all straight.
Comcast noted that Gieselman’s career thus far features “…a track record of consistently delivering revenue and profit growth….” Further, Gieselman’s background with several different companies gives him access to “…consumer marketing expertise…” that will likely prove helpful in managing customer experience. That means the customer base should be in fairly good hands, even as some will jump ship for better pricing.
Is Comcast Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMCSA stock based on 10 Buys and nine Holds assigned in the past three months, as indicated by the graphic below. After a 13.82% loss in its share price over the past year, the average CMCSA price target of $42.06 per share implies 22.43% upside potential.
