The Q3 earnings season has entered its busiest period with the majority of Big Tech having reported this week.
Barclay’s analysis showed that investors are punishing companies that failed to meet analyst targets, which suggests there’s “no margin for error” for U.S. and European companies, according to Barclays strategists.
This was also evident in the case of Comcast (NASDAQ:CMCSA), whose shares fell 8.4% on Thursday after the company reported earlier in the day.
For Bank of America analysts, this pullback has created an “enhanced buying opportunity.”
“Supported by its strong balance sheet, solid financial results, upcoming cash infusion from the sale of Hulu and strong FCF generation, we believe Comcast will continue to drive healthy capital returns. With shares trading at only ~6.3x EV/’24E EBITDA, we believe the share price decline represents a particularly attractive buying opportunity,” analysts wrote in a client note.
Similarly, Morgan Stanley analysts say CMCSA stock is “oversold” and “underpriced” following the most recent selloff.
“The broadband market is mature and competitive. In that context, Comcast continues to prioritize financial growth over customer growth. While we trim our net adds estimates, our revenue, EBITDA, and EPS estimates all come up. At a ~9x P/E, we see recent weakness in shares as a compelling oppty,” the analysts said.