Comcast (NASDAQ:CMCSA) was upgraded to Buy from Neutral, with its price target raised to $49 from $44 per share by BofA on Monday.
Analysts told investors the firm is re-rating the stock to Buy after a "super" quarter. The company "reported strong 1Q results, and management provided upbeat commentary," said the analysts.
"Better than forecast results were paced by significantly higher than projected Content & Experiences (C&E) financials, a net gain in broadband subs and solid cost control/reductions at Connectivity & Platforms (C&P)," they wrote.
In BofA's view, Comcast has reached an inflection point as they believe the company's media operations are poised for a strong turnaround while its connectivity business is benefitting from low churn, strong ARPU increases, and solid Business Services growth.
The analysts added that CMCSA's valuation is compelling, and they are raising broadband net adds estimates for 2023 to -37k from -45k previously following the first quarter beat.