We came across a bullish thesis on Comcast Corporation (CMCSA) on Substack by Boyar Research. In this article, we will summarize the bulls’ thesis on CMCSA. Comcast Corporation (CMCSA)’s share was trading at $36.30 as of Feb 24th. CMCSA’s trailing and forward P/E were 8.77 and 8.56 respectively according to Yahoo Finance.
A technician setting up a tower to improve the city’s broadband coverage.
Comcast shares dropped 11% after its Q4 earnings release on January 30, hitting $33.25 before partially recovering. Despite exceeding expectations on revenue, EBITDA, and EPS, the market reacted negatively to broadband subscriber losses, which came in at 131,000 versus an expected 96,500. The primary concern remains fixed wireless access (FWA) competition, as telecom providers aggressively expand broadband services. However, spectrum capacity constraints are already surfacing—T-Mobile has over 1 million customers on a waitlist due to network limitations. Meanwhile, Comcast’s continued investment in multi-gigabit symmetrical speeds strengthens its competitive positioning, ensuring it can meet rising data consumption demands driven by streaming and other bandwidth-intensive applications.
At just over $35 per share, Comcast appears significantly undervalued. The company operates with strong 31% EBITDA margins, produced $12.5 billion in free cash flow in 2024 (a 9% yield), and is expanding its high-growth segments, particularly its wireless business, which posted 17% revenue growth in Q4. Shareholder returns remain a priority—since 2021, Comcast has returned $55 billion via buybacks and dividends, equivalent to 40% of its market cap. The company recently raised its dividend by 6.5%, pushing its current yield to 3.7%, and authorized an additional $15 billion in share repurchases.
Applying a blended 9x multiple to projected 2025 EBITDA, the stock’s intrinsic value stands at $72 per share, implying a 90% upside from current levels. A potential catalyst for a re-rating is Comcast’s plan to spin off its legacy linear cable networks, which contribute only ~6% of revenue but have weighed on valuation. Removing this overhang could help unlock shareholder value and drive a significant rerating of the stock.
Comcast Corporation (CMCSA) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held CMCSA at the end of the third quarter which was 72 in the previous quarter. While we acknowledge the risk and potential of CMCSA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CMCSA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.