Wells Fargo Downgrades Major Cable Stocks, Forecasts 1 Million Subscriber Loss in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
Source: seekingalpha
- Rating Downgrade: On January 13, 2026, Wells Fargo Securities downgraded all four major cable stocks, including Charter Communications (CHTR), Comcast (CMCSA), Optimum (OPTU), and Cable One (CABO) to Underweight, reflecting a pessimistic outlook for the industry.
- Subscriber Loss Forecast: Analysts predict that cable companies will lose 1 million residential broadband subscribers by 2026, primarily due to fierce competition from fixed wireless access and fiber, which are expected to account for 100% of net broadband additions.
- Intensifying Competition: Fixed wireless access is projected to add nearly 4 million subscribers in 2025 and maintain around 3.7 million net adds in 2026, showcasing strong growth potential for wireless carriers and increasing pressure on cable operators.
- Gloomy Industry Outlook: Due to market saturation, immigration headwinds, and fewer price hikes, major mobile network operators are expected to see a 10% decline in postpaid phone net adds in 2026, with overall industry growth slowing to about 4%, indicating intensifying competition in both cable and wireless markets.
Analyst Views on CABO
Wall Street analysts forecast CABO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CABO is 202.50 USD with a low forecast of 145.00 USD and a high forecast of 260.00 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.
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 86.150
Low
145.00
Averages
202.50
High
260.00
Current: 86.150
Low
145.00
Averages
202.50
High
260.00
About CABO
Cable One, Inc. is a broadband communications provider. The Company provides residential customers with an array of broadband offerings including Gigabit speeds, advanced wireless fidelity (Wi-Fi), and video services. It provides services that are similar to those provided by cable companies, telephone companies and fiber providers, among others. Its three primary product lines include residential data, residential video, and business data. Its broadband plant generally consists of a fiber-to-the-premises or hybrid fiber-coaxial (HFC) network with ample unused capacity. It offers Sparklight Television (TV), an Internet protocol-based (IPTV) video service that allows customers with its Sparklight TV app to stream its video channels from the cloud. Its customers are located in seven states: Arizona, Idaho, Mississippi, Missouri, Oklahoma, South Carolina, and Texas. It provides services to approximately 1.1 million residential and business customers out of 2.8 million passings.
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.
