What happened
Shares of media and communications company Comcast (NASDAQ:CMCSA) fell as much as 8.3% on Wednesday. As of 12:40 p.m. EDT, the stock was down 3.2% -- even as the broader market is up sharply.
Shares of the communications company are likely down because of an analyst's decision to lower his price target for the stock.
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So what
Citi analyst Michael Rollins lowered his 12-month price target on the stock on Wednesday from $54 to $40, citing an increased chance of economic weakness or a recession as a result of the coronavirus pandemic.
The stock's pullback on Wednesday comes despite the overall market showing some resilience following a downturn over the last month. The S&P 500 is up 2.9% on Wednesday.
Now what
Of course, investors should keep in mind that while Rollins lowered his 12-month outlook for the stock, the analyst seems to think much of this riskier environment has already been priced in thanks to a 28% decline in Comcast's share price since Feb. 19, as $40 still represents meaningful upside -- and he is maintaining a buy rating on the stock.
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