By Senad Karaahmetovic
KeyBanc analysts made a series of rating moves in the broker’s research of Communication Services stocks.
Overall, they advise KeyBanc’s clients to avoid Cable and Wireless names altogether “as convergence between Wireless/Broadband is becoming destructive to all.” Between the two, the analysts see a better near-term setup in Cable stocks due to de-risked estimates, improving macro and data points, and valuation.
“With the majority of valuations on an EV/ EBITDA basis between 5-8x, we're favoring inexpensive, lower leverage,” they wrote in a client note.
“CMCSA theme park investment in EPIC Universe with completion in 2025 should continue to support strong Theme Park growth, while capital intensity should move lower in 2024 and further in 2025, supporting FCF growth, and allowing CMCSA to return capital to shareholders. With only 2.5x leverage, we like the balance sheet position. We see >15% upside to our PT of $44 with share purchases adding ~6% and dividend adding ~3% for a total return of ~25%,” they said.
The analysts reiterated T-Mobile US (NASDAQ: TMUS ) as the best-positioned wireless stock.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.