Comcast Ramps Up Peacock Investment as Broadband Growth Slows; Shares Attractive

We are leaving our Comcast fair value estimate at $60 per share after reviewing fourth-quarter earnings. The firm again posted a drop in broadband customer additions during the period (212,000 versus 538,000 a year ago), which management continues to ascribe to a slowdown in housing activity. We agree that factors tied to the pandemic are weighing on the market--rivals AT&T and Verizon haven’t reported especially strong growth--but we expect increasing competition at the margins will steadily pressure Comcast in the coming years.