Comcast Corporation (NASDAQ:CMCSA) grapples with broadband challenges, prompting analyst downgrades and concerns over pricing and investment pressures. This comes after the company on Thursday reported upbeat third-quarter results.
Here are some key analyst takeaways:
- Goldman Sachs analyst Michael Ng downgraded the rating from Buy to Neutral, while slashing the price target from $39 to $30.
- KeyBanc Capital Markets analyst Brandon Nispel downgraded the rating from Overweight to Sector Weight.
- Seaport Research Partners analyst David Joyce downgraded the rating from Buy to Neutral.
- BofA Securities analyst Jessica Reif Ehrlich maintained a Neutral rating, while cutting the price target from $36 to $31.
Check out other analyst stock ratings.
Goldman Sachs: Although Comcast's challenges in broadband were expected, the magnitude of pricing reset and the operating expenses needed during the 2025-26 transition year come as a surprise, Ng said in his downgrade note. The company guided to continued declines of 4% year-on-year in Connectivity & Platforms EBITDA over the next several quarters, he added.
The analyst stated that this guidance reflects:
- Sequential decline in domestic broadband ARPU (average revenue per user) declines of 100 basis points (bps) to around 2.6% year-on-year in the fourth quarter
- Lack of domestic broadband ARPU growth in early 2026 due to no price hikes
- Investments to support wireless/broadband convergence and the transition of broadband customers to new pricing.
KeyBanc Capital Markets: Although Comcast reported higher-than-expected Broadband net additions, the investment needed to achieve the results was much more than anticipated, Nispel said. Further investment is needed as Broadband price increases are unlikely in the first half of 2026, he added.
AT&T Inc (NYSE:T), Verizon Communications Inc (NYSE:VZ) and T-Mobile US Inc (NASDAQ:TMUS) seem determined to continue with their Broadband ambitions, the analyst stated. "Looking forward, competitive intensity in Broadband is going to get higher, and we need to see substantial evidence of broadband subscriber growth improvement before becoming more constructive," he further wrote.
Seaport Research Partners: Comcast indicated its Broadband ARPU could decline by another 100 bps in the fourth quarter, "due to the new 5-year pricelock uptake," Joyse said. The announcement that management does not intend to take the typical rate hike in the first quarter worsens the problem, he added.
An inflection in Broadband ARPU is unlikely before the third quarter of 2026, the analyst stated. While there are positive developments at Business Services, the Theme Parks, and the Studio, "the Broadband business cash flow drives the economics of CMCSA," he further wrote.
BofA Securities: Comcast delivered better-than-expected results for the third quarter, "including a smaller broadband net sub loss than forecast," Ehrlich said. She added, however, that broadband ARPU came under pressure due to higher investments and changes to pricing and packaging.
Management indicated investments will continue, causing C&P EBITDA to decline over the next several quarters, the analyst stated. "We are adjusting our 4Q25 broadband net loss to -180k (vs. -130k) to better reflect the still fiercely competitive backdrop," she further wrote.
CMCSA Price Action: Comcast shares were up 0.46% at $27.44 at the time of publication on Friday, according to Benzinga Pro data.
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