Comcast (CMCSA) Stock Forecast & Price Target

Comcast demonstrates a strong financial outlook driven by growth across its three core business segments—cable services, media, and content and experiences, with a notable 19% revenue increase in its theme parks and mid-teen growth for Peacock. The company is optimistic about upcoming revenue-generating events, including a robust film slate and a new NBA rights deal, which are expected to enhance advertising and distribution income. Despite facing challenges in certain areas, Comcast's diversified portfolio and strategic investments position it favorably for sustained growth and improved earnings before interest, taxes, depreciation, and amortization (EBITDA).

Comcast is facing significant financial challenges, as evidenced by a 3.7% year-over-year decline in EBITDA in Q3, stemming from increased operational expenses and revenue dilution due to a strategic pivot in pricing and customer experience. The company's Broadband ARPU is projected to decline further, with expectations of negative growth in key metrics such as Connectivity & Platforms EBITDA, which is anticipated to decrease by 5.5% from previous estimates. Additionally, a lack of typical rate increases is compounding these declines, leading to expectations of continued pressure on EBITDA across multiple quarters, further diminishing long-term holders' equity value.