'Absolutely Not.' Comcast Stock (NASDAQ:CMCSA) Gains, Will Not Put NBCUniversal Up for Sale

Entertainment giant Comcast (CMCSA) recently looked to spin off NBCUniversal, a move that left some wondering why Comcast was looking to throw out a movie studio with a decent, if somewhat lackluster, stable of intellectual property to work with. The theme parks and streaming platform included were also not exactly worthy of scorn in their own right. But CEO Brian Roberts made it clear that Comcast would "absolutely not" position the companies for a sale. Investors seem pleased about this, and gave Comcast stock a fractional boost in Wednesday afternoon's trading.

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Comcast was generally considered to have handled NBCUniversal operations well, but the stock performance did not reflect a vital, lucrative operation in its stable. With standard cable starting to falter in the face of streaming services and even Comcast's internet operations starting to suffer, it was clear Comcast needed to do something. The move to spin off NBC's cable connections into Versant Media Group (VSNT) was a good start, but ultimately not enough.

Worst yet, NBCUniversal's downsizing comes as many Hollywood operations are adding on, making it less able to defend against their incursions on what market share NBCUniversal has. Brian Roberts clarified, somewhat, plans for NBCUniversal by declaring, "This is the right move to put each company in the strongest position to create value, fully monetize its assets and aggressively pursue its own organic growth strategies."

British Operations

Another unexpected point in the NBCUniversal story is Sky, its British operation. It recently agreed to acquire ITV's media and entertainment business, a move that came not long after Comcast announced plans to spin off NBCUniversal and Sky into a separate operation from Comcast itself. The idea seemed somewhat reasonable, allowing two major British media operations to consolidate, share resources, and be better positioned to fend off the surging competition seen from rival streaming operations.

Of course, some might question just how well this will ultimately work. Certainly, NBCUniversal has some valuable property on its hands. Jurassic Park, Despicable Me, and recent additions like Twisted Metal are proving their worth. But even with ITV, that may not be enough for NBCUniversal to truly fend off some of the bigger operations out there. Only time will tell just how far that goes.

Is Comcast Stock a Good Buy Right Now?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMCSA stock based on six Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 34.28% loss in its share price over the past year, the average CMCSA price target of $32.21 per share implies 36.85% upside potential.