Pacific Crest Recommends Comcast Despite Time Warner Outcome

Regardless of whether Comcast Corporation CMCSA can complete its purchase of Time Warner Cable Inc TWC, Comcast has room to move higher, according to Pacific Crest Securities. However, the firm does see the deal occurring despite the fact that the arbitrage spread has increased to 12 percent from 8 percent in early October.

Pacific Crest is optimistic about Comcast’s X-series platform, noting that it should help “reverse a decade of share loss in video,” regardless of the Time Warner outcome. For Time Warner, Pacific Crest sees a backup offer coming from Charter Communications, Inc. CHTR if the Comcast deal did fall through.

Pacific Crest has a $65 price target on Comcast, a 15 percent premium to Friday’s closing price of $56.31.