Comcast: Ordinary Business, Extraordinary Price

Sanjay Swamy 144 Followers Follow Summary Comcast is rated Buy with a $29.50 price target, offering ~26% upside from current levels. CMCSA trades at distressed multiples, pricing in terminal decline despite record free cash flow and a well-covered 5.5% dividend. A sum-of-the-parts analysis shows the current valuation is near bear-case trough multiples across all segments, providing notable downside protection. Upcoming separation and continued deleveraging offer catalysts for a valuation re-rating, with risk skewed favorably for risk-averse investors. Sundry Photography/iStock Editorial via Getty Images Investment Thesis I rate Comcast ( CMCSA ) a Buy with a $29.50 price target, roughly 26% above the current price near $23.50. This thesis is a bit different from my other, more speculatively focused ideas. I have always been a This article was written by Sanjay Swamy 144 Followers Follow Sanjay is a value investor who adapts time-tested investment principles for the modern economy, focusing on companies whose true economic power is obscured by traditional screening metrics. He has been investing since middle school, later sharpening his analytical framework as an analyst for Stanford’s Charles R. Blyth Fund and at Schroders. Sanjay holds a B.A. in Economics from Stanford University and is a Graduate Associate at Franklin Templeton. While he maintains a strong analytical focus on the TMT sector, his framework is designed to identify structural mispricings and unrecognized value wherever it can be found. Analyst’s Disclosure: I/we have a beneficial long position in the shares of CMCSA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.