Analyst Note| Michael Hodel, CFA |
As telegraphed in September, Comcast’s broadband customer growth weakened a bit during the third quarter, which seems to have upset some investors. We don’t believe slowing growth is a cause for concern. The firm continues to handily beat its primary rivals, and the pandemic has created uneven demand. That said, we expect fiber network buildouts will create incremental competition over the next several years, causing customer growth to gradually decelerate. We are leaving our fair value estimate at $60 per share. With the stock selling off in recent weeks, we believe valuation is starting to look attractive.