Chris Blount
04-13-04, 07:03 AM
Is Comcast ready to exit its unsolicited bid for Disney? Banc of America analyst Doug Shapiro thinks so.
"We are increasingly convinced that Comcast will ultimately abandon the Disney bid," Shapiro said in a research note released Monday. "Comcast's ability to raise its bid is severely constrained and neither the Disney board nor shareholders seem willing to budge on the ask (asking price)."
He added, "The timing is tough to guess, but we believe that the company is waiting for a reason to walk away." Comcast made its bid for Disney in February, a deal valued at the time at $66 billion.
Based on the speculation, Shapiro raised his rating on Comcast to "neutral" and his price target for CMCSA shares to $41. "We think the bid has overshadowed positive fundamentals for the (cable stocks) group and - in absence of the bid - we think CMCSA is particularly compelling," the analyst said.
Comcast closed up more than 3 percent to $30.34 in Monday trading.
http://www.skyreport.com (Used with permission)
"We are increasingly convinced that Comcast will ultimately abandon the Disney bid," Shapiro said in a research note released Monday. "Comcast's ability to raise its bid is severely constrained and neither the Disney board nor shareholders seem willing to budge on the ask (asking price)."
He added, "The timing is tough to guess, but we believe that the company is waiting for a reason to walk away." Comcast made its bid for Disney in February, a deal valued at the time at $66 billion.
Based on the speculation, Shapiro raised his rating on Comcast to "neutral" and his price target for CMCSA shares to $41. "We think the bid has overshadowed positive fundamentals for the (cable stocks) group and - in absence of the bid - we think CMCSA is particularly compelling," the analyst said.
Comcast closed up more than 3 percent to $30.34 in Monday trading.
http://www.skyreport.com (Used with permission)