Comcast (CMCSA – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Jessica Reif Ehrlich from Bank of America Securities maintained a Hold rating on the stock and has a $38.00 price target.
Jessica Reif Ehrlich’s rating is based on Comcast’s strategic focus on its six pillars of growth, particularly in the Theme Parks segment, which is expected to generate strong growth in the near to intermediate term. The opening of Epic Universe, with its innovative attractions and expanded capacity, is anticipated to boost the Theme Park segment significantly. However, there is uncertainty about whether this alone will make Universal Orlando a stand-alone full-week destination, despite the positive trends in bookings and increased visitor traffic.
Comcast’s broadband business is undergoing a strategic shift to protect and potentially drive growth, which presents challenges for EBITDA growth in 2025. The company is focusing on wireless, enhancing Wi-Fi offerings, and simplifying pricing, but these efforts are expected to take several quarters to yield results. While business services remain a stable revenue driver, the overall outlook for Comcast in 2025 suggests a reset year, leading to the Hold rating with a price objective of $38.