Comcast (CMCSA) is likely to have a soft Q1 report, with almost flat revenue, moderating broadband losses and higher media costs, but is expected to improve later in the year as new pricing and packaging changes start to help, UBS said in a note emailed Wednesday.

Comcast's connectivity business may stay under pressure in the near term, with Q1 revenue seen down 2% and earnings before interest, taxes, depreciation, and amortization down 4.7%, before conditions improve in H2, the investment firm said.

The bank sees broadband competition to worsen, while it expects the company to lose 150,000 broadband subscribers in Q1 and 590,000 in the full year, moderating from last year as the benefit of new go to market approach kicks in.

Content revenue may rise 25% in the quarter, helped by parks, Peacock, the Olympics, the Super Bowl and NBA advertising, UBS added.

UBS kept its neutral rating and $32 price target for Comcast, saying the stock looks cheap versus past levels, but stronger broadband competition may keep pressure on the business.

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