NEW YORK (TheStreet) -- Shares of Comcast Corp (CMCSA) were climbing by 0.62% to $59.19 in Wednesday's regular trading session, after analysts at Credit Suisse started coverage on the media giant this morning.
The firm issued an "outperform" rating and a $66 price target on the stock.
Credit Suisse expects the company's NBC Universal unit to generate strong growth in the medium term.
The firm thinks that Comcast is well-positioned to cope with the structural changes underway in video consumption.
Analysts added that Comcast should benefit from increasing demand for high-bandwidth broadband services, as well as the investments it has made in its network and platform.
Philadelphia-based Comcast is a media and technology company, operating under its two primary businesses, Comcast Cable and NBCUniversal.
Separately, TheStreet Ratings team rates COMCAST CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate COMCAST CORP (CMCSA) a BUY. 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 solid stock price performance, growth in earnings per share, increase in net income, revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- COMCAST CORP has improved earnings per share by 14.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. 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 ($6.63 versus $3.20).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Media industry average. The net income increased by 10.0% when compared to the same quarter one year prior, going from $1,871.00 million to $2,059.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Media industry and the overall market, COMCAST CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- You can view the full analysis from the report here: CMCSA Ratings Report