Steven Cahall, an analyst from Wells Fargo, maintained the Buy rating on Charter Communications (CHTR – Research Report). The associated price target is $460.00.
Steven Cahall has given a Buy rating to Charter Communications considering a blend of long-term growth prospects and current valuation appeal. At the core of his optimism lies the company’s substantial fixed broadband base, which promises stability and growth, especially with rural expansion initiatives. Cahall notes that by 2026, Charter’s capital intensity is expected to decline, enhancing free cash flow margins. Additionally, he finds the valuation compelling, with enterprise value to EBITDA multiples for 2024/2025 projected to be below 7x, which is attractive relative to sector averages.
The analyst also underscores that while there are near-term headwinds, such as competitive pressures and uncertainties surrounding the Affordable Connectivity Program (ACP), these are outweighed by the potential for revenue growth driven by price increases and the success of Spectrum One conversions. Cahall anticipates that Charter’s efforts in video subscriptions and new streaming bundles could mitigate subscriber declines, and the expected decrease in capital expenditures come 2026 will further bolster free cash flow. Looking about a year ahead, he believes that the market will favor Charter’s stock as investors recognize the company’s improving financials and subscriber metrics, leading to his recommendation to buy on weakness.
CHTR’s price has also changed slightly for the past six months – from $387.060 to $364.550, which is a -5.82% drop .
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Charter Communications (CHTR) Company Description:
Founded in 1993, Charter Communications, Inc. provides cable and broadband communications services to more than 30 million customers in the United States through its Spectrum brand. The company’s services include internet access, data networking, video programming, voice communications, and local advertising services. The company also provides regional sports networks and local sports, news, and original programming to its customers. The company is headquartered in Stamford, Connecticut.
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