Brean Capital Sees Significant Value Creation Potential For Comcast
In a report published Wednesday, Brean Capital analyst Todd Mitchell reiterated a Buy rating and $65.00 price target on Comcast (NASDAQ: CMCSA).
In the report, Brean Capital noted, “We believe that the acquisition of Time Warner Cable (TWC $149.15, Buy) will create far greater synergies than what has been publicly discussed by either company. Comcast was a far better run company than TWC and NBCU appears to be in a structural renewal from prior underperformance.
"We foresee multi-billion opportunities for the combined company to create value in 1) raising TWC's residential metrics to the level of Comcast's, 2) combining the companies' highly complementary enterprise businesses, 3) a potential entrée into wireless via the formation of an MVNO, and 4) leveraging the two companies' national footprint to drive innovation into advertising. As a result, we reiterate our target price on CMCSA of $65, which is based on 8.5x pro forma 2014E EV/EBITDA, and we reiterate our BUY rating.”
Comcast closed on Tuesday at $54.63.
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