After Comcast Corporation (NASDAQ:CMCSA) delivered multiple positive catalysts, S&P Capital IQ analyst Amobi lifted his price target by $8 from $74 to $82. However, the analyst retained his Buy rating on the cable service provider’s shares. This price tag is based on 2017 EV/EBITDA of 9.2X, near peers. Additionally, the company’s 15 percent dividend increase will provide 1.7 percent yield.
The analyst disclosed that based on increased programming costs, he is trimming EPS estimate by ten cents a share to $3.76 for the year 2017. Amobi also established EPS estimate of $4.33 for the year 2018.
The latest move came on the back of Comcast reporting an adjusted EPS of 89 cents for the fourth quarter. That was one penny higher than the Capital IQ consensus. Revenue, which grew 9 percent, was driven by subscriber growth at cable and more traction at NBC Universal’s broadcast, as well as, theme parks. Its Total EBITDA margins widened 0.4 percent.
“Comcast sees ’17 wireless bundling, plans $5B share buybacks in ’17, and sets a 2-for-1 stock split,” the analyst concluded in his research note.
At time of writing this, the stock traded up 2.48 percent.