BNP Paribas on Tuesday downgraded cable TV names Comcast (CMCSA) and Cable One (CABO) to “underperform” from “neutral,” as fiber expansion erodes the sector’s market share.
The research firm said U.S. cable stocks collapsed due to expanding fiber and fixed wireless footprints, which “sapped the robust subscriber and ARPU growth that fueled their earlier outperformance.”
In its analysis, BNP pointed out that U.S. cable companies have lost 10% of the fixed broadband market over the last 5 years.
BNP noted that operating trends for U.S. cable continued to be challenging in the fourth quarter of 2025, and telcos have talked down broadband ARPU growth.
The research firm said Comcast is most exposed to fiber headwinds, and they view broadband revenue estimates as “too optimistic” for the second half of 2026.
They also expect Cable One to be susceptible to the headwinds and expect ongoing disappointment with KPIs/financials at the company.
CMCSA’s price target was cut by $1 to $27, implying a 15% downside; CABO’s PT was slashed by $45 to $80, implying a 20% downside.
Cable One shares are down more than 5% in early open market trading; Comcast is largely flat.