Comcast Shares Tank 7% Since Monday: Market Reaction To Q4 Subscriber Loss Guidance Is 'Overdone,' Says Bullish Analyst

Comcast Corp (NASDAQ:CMCSA) plans to spin off its cable networks into a new company.

The stock declined by 9% since Monday after management guided to "a marginal competitively driven increase in Broadband subscriber losses" and the shares are currently "oversold," according to Seaport Research Partners.

Analyst David Joyce upgraded the rating for Comcast from Neutral to Buy, while maintaining the price target at $46.

The Comcast Thesis: Comcast Cable’s CEO indicated that broadband competition had intensified and guided to a net loss of 100,000 subscribers in the fourth quarter of 2024, Joyce said in the upgrade note.

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This is only 33,000 lower than the previous estimate, on Comcast's base of 32 million subscribers, and the stock reactions seems "overdone," he added.

"Concurrently, Comcast announced a broad-reaching distribution renewal with Warner Bros. Discovery Inc. (NASDAQ:WBD) for linear and Max properties domestically and with Comcast’s Sky in Europe — this should be construed positively for both CMCSA and WBD," the analyst wrote.

This makes Comcast "appear constructive on supporting the broader linear industry ahead of its Cable Networks spinoff later in 2025," he added.

CMCSA Price Action: Shares of Comcast had risen by 1.04% to $40.12 at the time of publication on Thursday.

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