Macquarie Research analyst Amy Yong downgraded Comcast Corp. to "neutral" from "outperform," citing concerns over the company's acquisition strategy, CNBC reported Feb. 28.
The ratings action follows the company's announcement of a cash proposal of £12.50 per share for British pay TV giant Sky plc. Comcast said its proposal represents a 16% increase in value over the existing 21st Century Fox Inc. offer for Sky.
Yong, who reduced her price target on Comcast stock to $42 from $47, reportedly said in a research note that while Comcast's potential "to expand internationally" and "double its scale" is great, "uncertainty around the M&A playbook and increased net leverage to 3x marks a shift in what would otherwise be a clean thesis."
