Macquarie Research cut its rating for Comcast Corporation (CMCSA) from “Outperform” to “Neutral” on Wednesday, as it highlighted concerns in regard to the media giants bid to acquire Sky Plc. Comcast had proposed $31 billion to acquire the European pay-TV group.
Comcast shares closed lower for a second consecutive trading session on Wednesday. The stock went down 1.23% ($0.45) to $36.21, after touching an intraday low at $35.76, or a price level not seen since November 28th ($35.26).
In the week ended on February 25th the shares of the media giant lost 0.73% of their market value compared to a week ago, which marked the third drop out of four weeks.
The stock retreated 14.81% in February, which marked the first loss out of four months. It has also been the worst monthly performance since October 2008, when Comcasts stock plunged 19.67%.
For the entire past year, the shares of the NASDAQ-listed company rose 16.02% following another 22.36% surge in 2016.
“The potential to expand internationally, double its scale, and leverage cross-border [intellectual property] is undoubtedly a great one. However, uncertainty around the M&A playbook and increased net leverage to 3x marks a shift in what would otherwise be a clean thesis”, Macquarie analyst Amy Yong said in a February 28th client note, cited by CNBC.
“Though the downside in CMCSA shares is limited after yesterdays move, we believe the unpredictability could cap near-term upside”, she added.
The analyst also revised down her price target on the stock from $47 to $42.
According to CNN Money, the 29 analysts, offering 12-month forecasts regarding Comcast Corporation’s stock price, have a median target of $49.00, with a high estimate of $56.00 and a low estimate of $42.00. The median estimate is a 35.32% surge compared to the closing price of $36.21 on February 28th.
The same media also reported that 25 out of 32 surveyed investment analysts had rated Comcast Corporation’s stock as “Buy”, while 3 – as “Hold”.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, today’s levels of importance for the Comcast stock are presented as follows:
R1 – $36.35
R2 – $36.47
R3 (Range Resistance – Sell) – $36.59
R4 (Long Breakout) – $36.95
R5 (Breakout Target 1) – $37.37
R6 (Breakout Target 2) – $37.56
S1 – $36.11
S2 – $35.99
S3 (Range Support – Buy) – $35.87
S4 (Short Breakout) – $35.51
S5 (Breakout Target 1) – $35.09
S6 (Breakout Target 2) – $34.90
By using the traditional method of calculation, the weekly levels of importance for Comcast Corporation (CMCSA) are presented as follows:
Central Pivot Point – $39.30
R1 – $40.04
R2 – $40.57
R3 – $41.31
R4 – $42.04
S1 – $38.77
S2 – $38.03
S3 – $37.50
S4 – $36.96
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