Comcast (CMCSA) shares are offering "limited" upside potential amid worries over sustained competition, Oppenheimer said in a note Thursday following a mixed Q3 performance.
Oppenheimer analysts said they are doubling their estimates for 2027 to 2030 broadband net losses on sustained competition from fiber, fixed wireless access and satellite.
Combined with average revenue per user declines of 1% to 2% will make it difficult to grow revenue and EBITDA, they said.
"The stock looks cheap at 5x 2027E EV/EBITDA and 17% FCF yield, but has limited upside potential," the analysts said.
The report said its Q3 results showed better-than-expected margins in Content & Experiences thanks to a second profitable quarter at Peacock.
The note said its core connectivity business remained under
pressure, with broadband losses widening to 144,000 from 92,000 last year and average revenue per user falling 2.9%.
Oppenheimer kept its perform rating.
Price: 22.69, Change: -0.16, Percent Change: -0.68
