It is easy to forget, sometimes, that entertainment giant Comcast (CMCSA) is also one of the biggest internet service providers around. And in aid of that, it recently got together with Cisco (CSCO) to produce powerful new options in connectivity aimed at business users. This was good enough news for investors, who sent Comcast shares up fractionally in Tuesday afternoon’s trading.
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Comcast’s secure networking solution, reports noted, is now built around the Cisco Meraki platform. Cisco Meraki, for those not familiar, is a “…mesh networking startup that designed its technology based on the Roofnet Project…” This includes a range of products from switches to firewalls and beyond, and ultimately, gives Comcast’s network better protection as well as performance.
Comcast Business’ senior vice president and head of secure networking Terry Traina noted, “Secure, scalable connectivity is no longer a luxury, it’s a business imperative. We’re proud to offer a solution that meets the needs of growing enterprises with the same reliability and performance trusted by the Fortune 500. With the Meraki Technology Stack from Comcast Business, businesses can focus on what they do best, while we help them with their networking needs.”
One Monster Loan
Comcast’s Versant spin-off plan is also proceeding apace, as Comcast recently took out a loan of $750 million to keep the various cable networks going once the spin-off is complete. Comcast’s linear channels—which include channels ranging from MSNBC to SyFy—will be put into their own separate business, Versant, that Comcast owns.
Reports note that the loan is set up as part of a “…broader $3.5 billion debt package,” but will also put Versant in a solid position as it launches. The $750 million is intended as a “revolving credit line,” designed to cover a range of expenses from operational to capital expenditure. Since Versant will be able to cover its expenses early on, that increases the chance of it remaining viable going forward.
Is Comcast Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMCSA stock based on nine Buys, nine Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 28.82% loss in its share price over the past year, the average CMCSA price target of $40.36 per share implies 35.44% upside potential.
