Comcast downgraded to Equal Weight at Morgan Stanley on earnings growth view

As previously reported, Morgan Stanley analyst Benjamin Swinburne downgraded Comcast (CMCSA) to Equal Weight from Overweight with a price target of $45, down from $48. For the North American Telecom and Cable Services group, the analyst finds the U.S. wireless industry structure as “supportive of growth,” while arguing that broadband competition is likely to intensify. The firm continues to see limited downside to Comcast shares given the company’s ability to deliver continued adjusted EPS growth as it allocates capital to buybacks and navigates a challenging broadband market, but it thinks a mid-to-high single digit adjusted EPS growth forecast is “not enough to support meaningful upside in shares,” the analyst tells investors.