Charter Communications (CHTR) Downgraded, Price Target Cut to $180
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
- Rating Downgrade: Wells Fargo downgraded Charter Communications (NASDAQ:CHTR) from Equal Weight to Underweight, lowering the price target from $240 to $180, reflecting concerns over intensified competition in the broadband market, with fiber and fixed wireless expected to continue capturing cable market share by 2026.
- Growth Challenges: The firm noted weaker net additions for Charter, challenges in growth at Cox, and a free cash flow outlook that hinges on subscriber stabilization, indicating a diminishing competitive edge for the company.
- UBS Price Target Cut: On December 22, UBS reduced its price target for Charter from $355 to $233 while maintaining a Neutral rating, anticipating that ongoing broadband competition and higher costs will lead to declines in year-over-year revenue and EBITDA, forecasting a 1.7% revenue drop and a 2.7% EBITDA decline.
- Future Outlook: UBS expects flat revenues and modest EBITDA growth in 2026, suggesting that cost-cutting efforts and political tailwinds could help mitigate low single-digit declines in residential revenue, highlighting the complexities of the market environment.
Analyst Views on CHTR
Wall Street analysts forecast CHTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CHTR is 286.91 USD with a low forecast of 165.00 USD and a high forecast of 428.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 182.990
Low
165.00
Averages
286.91
High
428.00
Current: 182.990
Low
165.00
Averages
286.91
High
428.00
About CHTR
Charter Communications, Inc. is a broadband connectivity company and cable operator serving more than 57 million homes and businesses in 41 states through its Spectrum brand. Over an advanced communications network, the Company offers a range of residential and business services, including Spectrum Internet, television (TV), Mobile and Voice. For small businesses, Spectrum Business delivers a range of broadband products and services coupled with special features and applications to enhance productivity. For mid-market and large businesses, Spectrum Business provides customized, fiber-based solutions. Spectrum Reach delivers advertising and production for the modern media landscape. The Company also distributes news coverage and sports programming to its customers through Spectrum Networks. The Company offers its customers subscription-based Internet, video, mobile and voice services, with prices and related charges based on the types of service selected.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
