CMCSA Stock Dips Overnight: Comcast Faces Target Cuts As Broadband Losses Remain A Concern

• Goldman Sachs cut Comcast’s price target to $23, citing subscriber loss and competition concerns. 
• Comcast CEO Michael Cavanagh said the company is changing its pricing and service bundles to counter competition. 
• In Q3, Comcast lost 144,000 broadband subscribers but added 368,000 wireless lines.

Comcast Corp. (CMCSA) stock slipped overnight as Goldman Sachs and Citi lowered their price targets, citing broadband subscriber losses and uncertainty around business turnaround. The company’s third-quarter (Q3) results showed declining revenue and free cash flow, while higher net income, wireless customer growth and Peacock’s profitability offered some relief. 

Comcast stock edged 0.8% lower overnight, ahead of Friday. However, the stock is on track for a second straight week of gains.

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Goldman Sachs And Citi Lower Comcast’s Price Target

Goldman Sachs analyst Michael Ng reduced his price target for Comcast to $23 from $24, maintaining a ‘Neutral’ rating. The analyst sees signs of improvement in the company's Connectivity & Platforms business, including stronger segment earnings and higher average revenue per broadband user.

These improvements could continue in Q3, supporting Comcast’s plan to bundle internet, wireless, and other services. However, the analyst remains concerned about the company’s ability to stop losing broadband customers. 

According to the analyst, intensifying competition continues to weigh on customer additions and retention, with broadband subscriber losses falling short of expectations. He also noted that the company treats broadband as one component of a broader package of connected services rather than a standalone product, but that approach is yet to ease pressure on subscriber numbers.

Citi lowered its price target for Comcast to $27 from $27.50 but kept its ‘Buy’ rating. The firm said Comcast’s planned business changes could make its 2027 financial outlook less certain. 

Comcast CEO Flags Satellite Competition Amid Broadband Customer Loss 

During the Q3 earnings call, Comcast CEO Michael Cavanagh said the company faces short-term financial challenges and must prepare for new competitors, including satellite internet providers. 

“While satellite is not yet a material factor, we recognize the importance of anticipating emerging forms of competition and positioning our business to respond as the market evolves.”

SpaceX’s (SPCX) expansion into internet and wireless services is seen as a growing competitive threat. Earlier this month, SpaceX said it will gain access to up to 14 MHz of paired spectrum in the 800 MHz band, giving Starlink Mobile access to low-frequency signals that could help overcome a major technical challenge. 

CFO Jason Armstrong said Comcast's broadband business lost 144,000 subscribers during the quarter. Meanwhile, its wireless operations gained 368,000 net lines, highlighting contrasting trends across the company's connectivity services. Cavanagh said Comcast is investing in its competitive position by reshaping how it prices, packages, and presents its services to customers.

Comcast’s Q3 revenue dropped 6.1% to $29.3 billion, while its Connectivity & Platforms revenue fell 2.7% to $19.7 billion due to broadband customer losses and lower rates. However, the company added 368,000 wireless lines, bringing its total to about 10.6 million. 

CMCSA Stock: Retail View

On Stocktwits, retail sentiment around the stock turned ‘neutral’ from ‘bearish’. 

A user said private equity firms should take a closer look at the “badly run company,” and went on to criticize the huge dividends it pays despite “losing broadband subscribers.” The user added that the dividend “should be stopped” and the money redirected toward “share buybacks and broadband subscriber retention.” 

CMCSA stock has declined 18%  year-to-date. 

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