Wells Fargo upgrades ‘de-risked’ Comcast to Equal Weight

Wells Fargo analyst Steven Cahall upgraded Comcast to Equal Weight from Underweight with a price target of $38, up from $30. The analyst is "less negative" on the company’s cable outlook with slower EBITDA growth but also "clearer capex." However, he’s "more negative" on NBC Universal and is below Street estimates on free cash flow. Net/net, Cahall now thinks Comcast is "de-risked" and sees fair value at $38 per share. "While broadband competition is increasing, it’s not creating all the bad trends we had feared," Cahall tells investors in a research note.