Comcast (CMCSA) Stock Forecast & Price Target

Comcast demonstrated strong financial performance with a 10% increase in total adjusted EBITDA, reaching $8.8 billion, highlighting robust revenue generation capabilities. The company's wireless segment achieved 307,000 net additions, marking a 12% penetration of its customer base, which contributes positively to its overall growth strategy. Additionally, the upcoming releases in its Studio division and the anticipated profitability from the Peacock streaming platform further support a favorable long-term outlook for Comcast, as they are positioned to capitalize on both evolving content consumption and connectivity demands.

Comcast experienced an 11% decline in stock value, primarily attributed to disappointing broadband unit growth, leading to an adjustment in fiscal year 2025 earnings per share (EPS) expectations from $4.37 to $4.21, with a projected flat growth in adjusted EBITDA of $38 billion. Additionally, the forecast now anticipates a net loss of 506,000 broadband subscribers by 2025, worsening from an earlier projection of a loss of 322,000, which further decreases the EPS estimate for fiscal year 2026 from $4.95 to $4.74. Margins are likely to be pressured due to investments in theme parks and marketing costs, combined with potential revenue declines stemming from a shift in pricing strategy, leading to concerns about average revenue per user growth and resulting in a reevaluation of Comcast's fair valuation.