By Dhirendra Tripathi
Investing.com – Comcast (NASDAQ:CMCSA) rose 1.2% during Tuesday’s trading after Morgan Stanley (NYSE:MS)Stanley raised the target for the stock to $70, an upside potential of approximately 23% from the stock’s current level of $56.78.
Analyst Benjamin Swinburne reiterated his overweight while discussing higher expectations at Comcast subsidiaries NBCUniversal and Sky.
Swinburne updated his view with an earlier than expected return to buybacks and a materially higher earnings outlook at Sky because of the three-year extension at a flat cost for its largest cost item -- the English Premier League.
“While we assume the company will reinvest some of those savings into entertainment content, it significantly increases their chances of outperforming and we are above consensus at Sky over the next several years,” he wrote in his report, according to StreetInsider.
According to the analyst, NBCU will likely see several years of elevated growth. The bank expects NBCU to contribute almost 40% of Comcast's consolidated 10% earnings compound annual growth rate from 2020 through 2024.
NBCU owns and operates a portfolio of news and entertainment television networks, a motion picture company, significant TV production operations, theme parks, and a premium ad-supported streaming service.
Sky operates media and telecom businesses in Europe.