Update shared on25 Sep 2025
Fair value Decreased 1.10%Amid persistent sector-wide competitive pressures and a balanced outlook on subscriber growth versus profitability, analysts have slightly lowered Charter Communications’ consensus price target from $391.90 to $387.60.
Analyst Commentary
- Sector-wide competitive pressures remain elevated, with analysts expressing concern over heightened competition impacting future performance.
- Bullish analysts cite improvements in broadband net subscriber trends, supported by continued momentum in Spectrum Life Unlimited and effective network upgrades.
- The Cox deal is viewed as neutral to free cash flow per share and not a major catalyst for valuation changes.
- Potential increases to company-wide cash flow guidance are expected, but the balance between subscriber growth (volumes) and profitability (margins) is an area of investor focus.
- While Charter’s go-to-market strategy is considered the strongest in Cable, sector headwinds temper expectations for outsized outperformance.
What's in the News
- Charter Communications was dropped from the S&P 100 index.
- Multiple class action lawsuits were filed alleging the company and certain executives misled investors regarding the impact of the Affordable Connectivity Program ending, Internet customer declines, and EBITDA growth.
- Charter reported Q2 EBITDA growth of 0.5% year-over-year, largely due to a one-time $45 million benefit; excluding this, EBITDA would have declined 0.3% and missed estimates, while Internet customer losses reached 117,000 for the quarter, causing shares to drop 18.4%.
- Shareholders approved the Second Amended and Restated Certificate of Incorporation.
- Charter completed a buyback of 3,832,505 shares for $1.44 billion, totaling 71.67% of the original buyback program.
Valuation Changes
Summary of Valuation Changes for Charter Communications
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $391.90 to $387.60.
- The Future P/E for Charter Communications has significantly fallen from 11.87x to 10.51x.
- The Consensus Revenue Growth forecasts for Charter Communications remained effectively unchanged, at 0.9% per annum.
Disclaimer
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