Analysts at Wells Fargo downgraded media and cable giant Comcast (NASDAQ:CMCSA) to "underweight" from a previous investment rating of "equal weight."

The research firm thinks the stock is no longer defensive as it is being pulled into a convergence investment cycle with higher mobile costs to re-accelerate broadband.

They see Connectivity & Platforms to remain pressured and estimate EBITDA growth in the segment for '25/'26 of -1.7%/-0.2% y/y and net adds of -500k/-420k.

"While FWA net adds are expected to be flat this year, we think the fiber headwind is still increasing due to the cumulative effect of ~5 years of aggressive overbuilding and a push to increase penetration faster," Wells Fargo said Monday.

"Connectivity & Platforms is the lion's share of CMCSA's earnings, and it faces historically intense competition from fiber overbuilding. In response, we expect CMCSA to invest into mobile+b'band convergence packaging, which lowers growth and requires time/risk to pay off in subscriber trends," the research firm added.

They also see an impact on NBCU due to a weakened ad market, expect elevated sports costs for the NBA, and see no break-even at Peacock.

CMCSA's price target was cut by $6 to $31, implying a downside of 8.1%.