Comcast May Be Moving to Mobile Offering, Credit Suisse's Sheikh Says

Comcast's creation of a mobile division, plus its activation of the Verizon mobile virtual network operator and participation in the broadcast incentive auction (see 1510270041) indicate it's potentially getting into the mobile business, said Credit Suisse analyst Omar Sheikh in a note to investors Monday. A mobile product offering would help strengthen ties to existing customers and allow potential growth with new ones, Sheikh said. Saying Comcast's X1 platform investment is "paying off," he raised the target price on Comcast from $69 to $75. Sheikh said the 90,000 video subscribers added in the past 12 months are driven largely by X1 and its increasing customer engagement and cutting churn. With only 40 percent of Comcast's video customer base penetrated, Sheikh said, "we see the significant investment in the rollout driving further improvement in cable video operating and financial metrics over the long term."