Comcast has gone too far, analyst says

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Comcast shares have been on the upswing since last week when the firm unveiled a dividend, but at least one analyst thinks the run-up has gone too far.

The dividend and a stock-buyback update "were positive developments, but they have little to do with valuation or fundamentals, yet the stock is up 15% since the earnings report," Credit Suisse analyst Bryan Kraft said in downgrading the cable giant's stock from "outperform" to "neutral."

He argued that the company led by CEO Brian Roberts remains challenged in terms of earnings momentum.

"Given increasing competition and a weak economy, we see little chance of positive consensus revisions," he said. And "upside seems limited given competitive challenges in the core video business."

Georg Szalai
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