With the Versant Spinoff Complete, Our Comcast Fair Value Estimate Goes to $42 From $44

Comcast’s core cable business enjoys significant competitive advantages, but it faces increased pressure from fixed-wireless offerings, which have proven viable broadband alternatives, and from fiber network expansion. Adjusting to this competitive reality has been painful, but we expect the market will reach equilibrium over the next couple of years. In the meantime, Comcast should continue to generate strong free cash flow, allowing it to repurchase shares and maintain strategic flexibility. With the media business in flux, we also believe the firm will have opportunities to position NBC more strongly, leveraging the unique assets at its disposal.