After investing in its network and platform, the Philadelphia-based media company will benefit from rising demand for high-bandwidth broadband services, Credit Suisse said.
Additionally, Comcast is advantaged by subsidiary NBC Universal's film studio Universal Pictures, which has one of the strongest film slates in the country, the firm said.
"We believe demand for bandwidth will continue to drive strong operating trends in Cable Communications; and regard vertical integration and the strength of the balance sheet as key competitive advantages for the group," the firm added.
Credit Suisse stock is down by 1.13% to $55.02 in early-morning trading on Wednesday. Global stocks are declining today after the release of weak Chinese services data, which has raised concerns about growth in the country, the Wall Street Journal reports.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate COMCAST CORP as a Buy with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CMCSA's revenue growth has slightly outpaced the industry average of 6.3%. Since the same quarter one year prior, revenues rose by 11.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has slightly increased to $4,979.00 million or 4.71% when compared to the same quarter last year. Despite an increase in cash flow, COMCAST CORP's average is still marginally south of the industry average growth rate of 8.97%.
- The debt-to-equity ratio is somewhat low, currently at 0.92, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.49 is very weak and demonstrates a lack of ability to pay short-term obligations.
- COMCAST CORP's earnings per share declined by 19.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COMCAST CORP increased its bottom line by earning $3.20 versus $2.56 in the prior year. This year, the market expects an improvement in earnings ($3.26 versus $3.20).
- You can view the full analysis from the report here: CMCSA