Despite Slowing Growth During Q1, We Believe Comcast Shares Are Deeply Undervalued

Growth in Comcast’s cable business has clearly slowed—and will likely continue to slow—as more customers gain access to fiber and wireless network alternatives. In that light, we don’t believe weak broadband customer growth during the first quarter was surprising. To us, however, the stock is reacting as if the firm is now headed for years of steep customer losses. We don’t believe that is likely. We are leaving our fair value estimate at $60 and believe the stock is highly undervalued.