Comcast Corp. has been upgraded by Rosenblatt Securities and Deutsche Bank in the wake of the company nnouncing plans to spin off NBCUniversal as a standalone public company.
Rosenblatt nalyst Barton Crockett raised his view on the stock to Buy from Neutral and set a $31 price target. Crockett noted that Comcast shares have fallen roughly 50% over the past five years, and argued that even modest revaluation in the media business could have a meaningful impact on overall shareholder value.
In his analysis Crockett said the proposed spinoff positions NBCUniversal for a future in which it could attract merger interest similar to what has occurred in the industry previously. His price target is derived from a sum-of-the-parts approach that applies a 4.5x multiple to 2027 EBITDA for Comcast onnectivity & Platform and an 11x multiple to NBCUniversal.
Deutsche Bank nalyst Bryan Kraft also upgraded Comcast to Buy, while reducing his price target to $32 from $34. Kraft explained that he moved to a sum-of-the-parts valuation methodology as a result of the announced separation.
Kraft outlined the way he expects the company to be reconstituted: Comcast Cable & Technology on one hand, and NBCUniversal on the other, with NBCUniversal to include Media, Theme Parks and Sky. He said the split should provide "greater strategic flexibility" for the newly independent businesses.
Using comparables to frame valuation, Kraft estimated roughly 30% upside over the next 12 months driven by the anticipated value unlock. His analysis applied current EV/EBITDA multiples of 5.0x for Charter and 9.5x for Disney as benchmarks, and explicitly assumed no expansion of those multiples from present levels.
According to Deutsche Bank, Comcast management expects the transaction to complete within 12 months, subject to SEC approval. Kraft also identified downside scenarios that could erode the thesis, pointing to potential delays in separating the businesses, additional compression of cable multiples, and intensifying competition in broadband.
Market context and mechanics
Both analysts shifted to a valuation framework that treats Comcast onnectivity & Platform and NBCUniversal as distinct operating entities. Their models rely on explicit EBITDA multiples for each component and compare those multiples to peers in the cable and media sectors.
Implications for investors
- Upgrades reflect a view that the spinoff could release latent value in the separate businesses.
- Valuation upside is tied to the multiples assigned to cable and media peers and to timely execution of the separation.
- Analysts highlight both a potential near-term re-rating and execution risks that could limit benefits.