Analyst Jeffrey Wlodarczak of Pivotal Research reiterated a Buy rating on Charter Communications (CHTR – Research Report), reducing the price target to $400.00.
Jeffrey Wlodarczak’s rating is based on a comprehensive evaluation of Charter Communications’ performance and market position. Despite facing competitive pressures and a mixed first-quarter performance, with a modest decline in data subscribers and wireless additions lower than expected, Charter still managed to achieve a 3% EBITDA growth, outperforming expectations. This growth was attributed to diligent cost control and a larger base of 30.5 million data subscribers, indicating an underlying resilience in the core business. Wlodarczak acknowledges the challenges from fixed wireless access (FWA) competition and a decrease in household moves, but he still sees value in the company’s strategic direction and asset quality.
Furthermore, Wlodarczak anticipates that Charter’s emphasis on delivering a best-in-class data product and converged wireless/wireline offerings will lead to a return to positive net new data subscriber growth in the future. This outlook, combined with the expected increase in bandwidth demand and Charter’s investment in enhancing their services, underpins the Buy rating. Despite temporarily reduced expectations for EBITDA growth and data average revenue per user (ARPU), the financial analyst sees the current valuation of Charter’s shares as too low, given the company’s dominant broadband position and compelling converged offerings that competitors cannot match. The company’s unique strategy and high EBITDA margins are viewed as underappreciated by the market, suggesting significant upside potential for the stock.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is neutral on the stock.
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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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