There's upside to Q3 estimates at Comcast (NASDAQ:CMCSA), JPMorgan says, with the company's core cable business doing well this year along with NBC TV.
Shares are up 1.7% on strong volume.
Analyst Philip Cusick rates the stock Overweight, noting "solid cable segment growth, combined with an improved NBCU, makes for a strong and well-diversified cash flow stream." A mix shift to higher revenues in broadband and business services should persist, reaching about 50% of cable revenues by 2020, he says. (h/t Bloomberg)
There's risk, though, in the company's pricey push for Sky (OTCQX:SKYAY): "To be clear, we don't love the Sky deal," he says, noting it takes a simple U.S.-focused story and adds debt and complexity, and invites competition from the likes of Amazon and Google vs. Comcast's "clear ambition to be a European or even a pan-Western OTT provider."