Comcast’s shares are up more than 28% in 2019.
Shares of Comcast hit an all-time high on Wednesday morning after the company was upgraded by Goldman Sachs. And all signs seem to indicate that this is just the beginning for the company.
The stock is up more than 28% year to date and has outperformed the S&P 500 in 2019. This caused Goldman Sachs analyst Brett Feldman to upgrade the company from neutral to buy and raise its price target.
Things that are going well for Comcast
Comcast’s shares took a hit in 2018 when after it lost a bidding war with Disney to acquire 21st Century Fox’s entertainment assets. The company did gain control of the European television operator Sky.
As part of the deal, Comcast acquired Sky’s 23 million satellite customers and two million streaming subscribers. This should have been good news but investors were largely unhappy with the Sky acquisition.
They were concerned about the future of satellite and the costs associated with the acquisition. Comcast’s shares fell sharply as a result.
However, the company’s shares have rebounded, largely thanks to the company’s solid revenue growth last year. And the momentum continued with a positive first-quarter earnings report in April.
According to Feldman, Comcast should be able to continue to grow its annual revenue by 3.6% through 2024. And he estimated that earnings should grow by 11.6% over the same time frame.
Things to consider going forward
Analysts have been increasingly bullish when it comes to Comcast, with most giving the stock at least a buy rating. Feldman was particularly optimistic when it came to the company, saying that Comcast could add up to 1.1 million broadband customers in 2019.
However, Comcast does have a history of investing in pricey acquisitions which is often disconcerting to investors. Feldman said the company should continue to focus on paying down the debt it incurred from Sky and continuing to increase its earnings.