Deutsche Bank upgraded Comcast to Buy from Hold, while lowering its price target to $32 from $34, still implying over 34% upside. The upgrade follows Comcast's announcement that it will spin off NBCUniversal into a separate publicly traded company, a move the bank believes could unlock shareholder value. Analyst Bryan Kraft shifted the valuation methodology to a sum-of-the-parts analysis, which suggests greater value creation. The split, expected to close within a year, will leave Comcast focused on broadband, cable, and wireless services, while the new NBCUniversal entity will house assets including Universal Pictures, NBC, Peacock, and theme parks.
Comcast CorpDeutsche Bank upgraded Comcast to Buy and sees value in the planned spin-off of NBCUniversal, which could unlock shareholder value.