Markets & Finance

Banc of America Upgrades Comcast to Buy

Banc of America upgraded Comcast (CMCSA) to buy from neutral.

Analyst Douglas Shapiro says he's increasingly convinced that Comcast will utlimately abandon the Disney bid. His rationale is that the considerable bid/ask spread is unlikely to close. Shapiro says Comcast's ability to raise its bid is severely constrained, and neither the Disney board nor shareholders seem willing to budge on the ask price.

Although the timing tough to guess, he thinks Comcast is waiting for a reason to walk away. He believes the bid has overshadowed the positive fundamentals for Comcast, and in absence of a bid, he thinks the shares are particularly compelling. Shapiro raised his price target to $41.

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