Comcast (CMCSA) Faces Broadband Competition Despite Strong Performance, Says RBC Capital

Comcast Corporation (NASDAQ:CMCSA) ranks among the best communication services stocks to buy now. RBC Capital Markets began coverage of Comcast Corporation (NASDAQ:CMCSA) on September 8 with a Sector Perform rating and a $38 price target, stating that the company’s strong performance hasn’t been enough to counteract the intense competition in the broadband market.

Comcast Corporation (NASDAQ:CMCSA) has changed its prices to better protect its position, but as promotional offers expire and customers consider their options, the growth of competitors will continue to be a “significant challenge.”

Although RBC praised Comcast’s network approach, it pointed out longer-term risks related to the company’s dependence on the DOCSIS upgrade path and the possible requirement for more expensive fiber projects in the event that competition heats up.

“The risk-reward profile seems to be favorable, but we see few near-term catalysts,” RBC stated, adding that the stock’s limited visibility into subscriber trends is probably going to keep the firm from re-rating in the near future.

Comcast Corporation (NASDAQ:CMCSA) is a media, entertainment, and communications company that operates through three business units: Cable Communications, NBCUniversal, and Sky, the top entertainment provider in Europe. The company is growing its broadband offerings and enhancing its network infrastructure in response to rising customer demand.

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Disclosure: None. This article is originally published at Insider Monkey.