- Citi analyst Michael Rollins maintained a Buy rating on Comcast Corp CMCSA.
- The analyst expects Comcast to report relatively in-line 1Q23 results for the cable business as the company continues to navigate an ex-growth environment for cable broadband volume.
- Rollins’ outlook for NBCU is below consensus, given his expectation for ongoing headwinds from a softer macro and tough year-on-year comparisons.
- On a consolidated basis, Rollins’ outlook for EBITDA is about 40bps below consensus, while EPS outlook is above consensus.
- The analyst forecast buybacks continued steadily through the quarter at ~$2 billion.
- Rollins also updated his model to conform to the new segmentation while displaying how his outlook fits the prior segmentation.
- The re-rating reflects opportunities to improve Connectivity cash flow from a rising mix of broadband revenues & incremental efficiency initiatives.
- Price Action: CMCSA shares traded higher by 1.47% at $36.99 on the last check Wednesday.
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