One of the most successful weekends in the film market is behind us. The production of 'Barbie', whose impact on the financial markets we have already had the opportunity to write about, has taken in a staggering $155 million in the first three days of ticket sales in the United States. Christopher Nolan's 'Oppenheimer' (portraying the creator of the atomic bomb) was slightly less successful, but still impressive, with nearly $80 million. Both of these films beat initial sales expectations. Let's consider whether the film industry currently represents a good investment opportunity and what are the market prospects for Universal Pictures?
Comcast Corporation
The success of the Oppenheimer movie presents an opportunity for investment through Comcast, which has owned Universal Studios since 2013. Comcast Corporation is an American telecommunications company active in various areas of the media, television, internet and telephone industries. It is one of the major providers of cable and internet services in the United States.
It is also worth noting that Comcast Corporation owns NBCUniversal, a global media company that includes the NBC television network, TV stations: Telemundo, USA Network, Bravo, CNBC, MSNBC and many others. NBCUniversal is also involved in film production, television production, theme parks, including Universal Studios, and other activities in the entertainment industry.
Film production and distribution accounts for only 9.9% of the company's revenue. The largest share of sales is the distribution of network services such as internet and telephone (60% of revenues). Although 'Oppenheimer' was more successful than expected, ticket sales to date barely account for 0.6% of total revenue from the film segment last year.
Looking at its financial performance, the company boasts a long-term net profit margin of 11%, compared to an industry average of 2.5%. However, the company faces a relatively high level of debt at 55%.
The company's competitive advantage, relatively low valuation, improving economic situation and stable long-term revenues could all point to the potential for further growth in Comcast shares.
What does Wall Street think about Comcast Corporation's share price?
According to Market Screener, Comcast Corporation has 32 recommendations, with the majority of them being buy recommendations. The average target price is set at $45.79, 6% higher than the last closing price. The highest target price is at USD 60 and the lowest is USD 36.
Source: Conotoxia MT5, Comcast, Daily
Grzegorz Dróżdż, CAI MPW, Market Analyst of Conotoxia Ltd. (Conotoxia investment service)
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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