Comcast has catalysts for re-rating, says Morgan Stanley

Morgan Stanley analyst Benjamin Swinburne forecasts limited EBITDA growth and declining free cash flow for cable and satellite operators in 2023 and remains "broadly on the sidelines" among the group until rising capex drives faster top line. In that context, he prefers Overweight-rated Comcast, which he said trades at "the lowest valuation in the coverage group despite what we see as the continued potential for double-digit EPS growth over time." He sees catalysts for a re-rating of Comcast shares moving through 2023 and as the market looks to 2024, Swinburne tells investors.