Bank of America Securities analyst Jessica Reif Ehrlich has reiterated their neutral stance on CHTR stock, giving a Hold rating today.
Jessica Reif Ehrlich’s rating is based on a nuanced assessment of Charter Communications’ current performance and market conditions. The company reported mixed results in the first quarter, with broadband losses aligning with expectations but lighter revenue and a higher than anticipated EBITDA due to strong expense management. The forecast for increased broadband subscriber losses in upcoming quarters, linked to heightened competition from fiber and fixed wireless access providers, is a significant factor in this Hold rating. Additionally, the end of Affordable Connectivity Program (ACP) subsidies is expected to contribute to customer attrition, further challenging Charter’s market position.
Furthermore, the company’s leverage is expected to move towards the middle of its target range, which is essential for maintaining access to investment-grade debt markets. Despite these financial maneuvers and expectations of EBITDA growth in the latter half of the year, the projection of reduced share repurchases and an anticipated net loss of 800,000 broadband subscribers in 2024 have prompted a more conservative outlook. Coupled with a significant increase in expected video net losses and a slight decline in revenue projections, these factors underpin Ehrlich’s decision to maintain a Neutral rating and reduce the price objective to $300.
In another report released today, Citi also reiterated a Hold rating on the stock with a $280.00 price target.
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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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