Comcast (CMCSA) Stock Forecast & Price Target

Comcast's strong financial outlook is underscored by robust growth in its media segment, where revenue increased by 4% and Peacock's revenue surged in the mid-teens due to enhanced advertising and distribution. Furthermore, the content and experiences segment showcased impressive performance, highlighted by a 19% revenue increase in theme parks and a 13% growth in EBITDA, fueled by the success of the Epic Universe. Overall, Comcast's diverse business units, including its thriving broadband operations and significant programming investments, are positioned to enhance EBITDA and drive future advertising revenues, reinforcing the company's positive trajectory.

The recent performance of Comcast's stock has been notably poor, with shares declining 15% over the last three months and 22% year-to-date, contrasting sharply with the S&P 500’s gains during the same periods. This downturn is attributed to heightened competition in the saturated broadband market and a strategic pivot resulting in pricing adjustments that negatively impact cash flow, highlighted by a 3.7% year-over-year decline in EBITDA in Q3. Additionally, projections indicate further declines in broadband average revenue per user (ARPU) and EBITDA growth, which could turn negative in early 2026, as the company forgoes typical rate increases amidst ongoing investments in customer experience and marketing.