Comcast upgraded to Overweight from Neutral at Atlantic Equities

Atlantic Equities analyst Hamilton Faber upgraded Comcast (CMCSA) to Overweight from Neutral with a price target of $44, up from $36. The shares have underperformed the S&P 500 Index by 30% over the past two years as broadband additions have dried up, and growth investors have exited the stock, the analyst tells investors in a research note. However, the analyst believes broadband expectations are now "de-risked" with some potential upside to estimates as the housing market rebounds. Furthermore, in the event of a recession later this year, Comcast is well positioned as a defensive name, contends Atlantic. The firm has also modelled an acquisition of Warner Bros. Discovery (WBD) and subsequent spin of the enlarged content business, and believe this could add $8 per share to Comcast.