Goldman Sachs downgrades Comcast on broadband pricing reset amid competition

Investing.com -- Goldman Sachs downgraded Comcast to Neutral from Buy and slashed its price target to $30 from $39, saying the cable giant’s efforts to reset broadband pricing will weigh on earnings as it faces mounting competition from fiber and fixed wireless access providers.

The brokerage said Comcast’s broadband headwinds were well known, but the scale of the pricing transition and related operating costs in 2025 and 2026 were greater than expected.

It now expects Connectivity and Platforms EBITDA to decline about 4% year over year for several quarters, breaking its prior view that margins would expand through steady growth in average revenue per user.

Goldman said Comcast’s decision not to raise broadband prices in early 2026 and its spending to support broadband-wireless convergence will drive near-term pressure.

While the move reflects urgency to stabilize the business, the lack of near-term pricing growth removes a key earnings driver.

The note said domestic broadband net losses of 104,000 in the third quarter were better than expected, helped by seasonal factors, but overall subscriber trends remain challenged by fiber overbuilders and fixed wireless competition.

Wireless continued to perform well, with 414,000 net subscriber additions and growing monetization potential as free promotional lines convert to paying users in 2026.

Goldman said Comcast’s content and theme park businesses remain solid, with the Epic Universe park supporting double-digit revenue growth, and Peacock losses narrowing, but over 70% of enterprise value still comes from the Connectivity and Platforms unit.

The brokerage said the stock remains inexpensive but lacks a catalyst until broadband pricing stabilizes or subscriber trends improve.

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