Comcast Corp Class A CMCSA

Comcast: Downgrading Moat Rating to Narrow, but the Shares Still Look Attractive

We are moving our moat rating on Comcast to narrow from wide. While our enthusiasm has waned somewhat, we still expect Comcast to remain a dominant broadband provider, producing consistent cash flow for the foreseeable future. We also still believe NBC Universal has assets that set it apart from other traditional media firms, notably its theme parks. We are leaving our fair value estimate at $54, as we've already been gradually lowering our long-term return on capital expectations for the firm recently, blunting the valuation impact of the wide moat. We still view the stock as very attractive.