Comcast, the largest US cable operator, could see its stock soar nearly 57% in the next year due to available cash flows that it can spend on operations, according to the 27 August edition of Baron's.
"What excites me is that this company has so much money to spend on its own future. They will have $4 billion to spend between now and 2009 on operations that offer a very high return," Tom Russo, who manages money at investment fund Gardner Russo & Gardner, told Barron's.
"The potential is staggering and largely ignored in the stock." Russo's firm owns 10 million Comcast shares, the newspaper said.
On Friday, Comcast's shares closed at $25.48 on the Nasdaq Composite Index. The stock is trading down about 15.6% from its 52-week high of $30.18 reached on 18 January.
According to Barron's, the stock could climb to as high as $40 within the next 12 months.
Philadelphia-based Comcast is leading the charge by US cable operators to win subscribers from telephone companies by aggressively marketing its bundled television, high-speed Internet and phone services.
Last month, CEO Brian Roberts said he anticipates cable growth accelerating over the second half of 2007.
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