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LivestreamMenuComcast is planning to spin off NBCUniversal , which makes the stock more attractive to own, according to Deutsche Bank. The bank upgraded the telecom and media giant to buy from hold. It lowered its price target on shares to $32 from $34, though that still suggest 32% upside from Monday’s close. “The separation provides greater strategic flexibility…including the ability to pursue acquisitions or business combinations,” analyst Bryan Kraft said Monday in a note to clients. “There is clearly value in being able to act on opportunities as they might arise (e.g., the Netflix situation earlier this year), and separating the businesses into two independent companies is an important step in positioning Comcast to be able to capitalize on such opportunities in the future.” The spin-out of NBCUniversal will force the market to value Comcast and its former media business separately — which could translate to more upside for Comcast in the near future, according to the analyst. The conglomerate rose more than 4% on Monday after it announced the planned spin-off. The telecommunications giant spun out some of its cable television properties, forming publicly traded company Versant , earlier this year. Versant is the parent company of CNBC. In addition, Comcast and NBCU’s separation will make it easier for the former to free up capital to pursue other strategic acquisitions, per Deutsche Bank. Deutsche Bank’s call goes against consensus on Wall Street. Of the 32 analysts covering Comcast, 22 have a hold on shares, while seven have a buy or strong buy on the stock, LSEG data shows. Shares have fallen 28% over the past year.Read More
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