A Look at Charter Communications’s Valuation Following Spectrum’s New App Store and Streaming Partnerships

Charter Communications (CHTR) grabbed the spotlight after its Spectrum division rolled out the Spectrum App Store, a new platform letting customers easily manage a variety of streaming apps in one place. Spectrum’s recent announcements, such as partnerships with Apple and Amazon, also reflect the company’s push to integrate streaming content and connectivity in fresh ways.

See our latest analysis for Charter Communications.

Even as Spectrum makes waves with its new app platform and partnerships, investors are watching a challenging stock story: Charter’s share price has slumped by 36.8% over the last three months alone, contributing to a -28% year-to-date return and a total shareholder return of -23.7% over the past year. This is a sign that, despite product innovation, market sentiment remains cautious and momentum is still fading.

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With the stock trading far below recent analyst targets but facing persistent growth headwinds, investors must ask: are Charter shares now trading at a true discount, or is the market already factoring in future gains?

Most Popular Narrative: 32.7% Undervalued

With Charter Communications recently closing at $251.51, the most widely followed narrative puts its fair value much higher at $373.60. This has fueled a sharp undervaluation debate in the market. These numbers set the stage for a closer look at the drivers behind this upside potential.

Charter Communications is rapidly increasing its Spectrum Mobile line growth, providing a strong contribution to EBITDA and expected revenue growth due to its market-leading mobile connectivity. The company is leveraging its fully converged network and expanding CBRS deployment to handle increasing broadband and handset data usage efficiently, which should reduce costs and improve margins.

Read the complete narrative.

Want to know the secret sauce behind this premium valuation? It hinges on bold profit expansion, bullish network upgrades, and margin boosts forecasted by the narrative. Wonder what numbers are driving such a high price target? Dive in to see what’s fueling this ambitious outlook.

Result: Fair Value of $373.60 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing industry competition and potential regulatory changes could pose significant challenges to Charter’s growth outlook, which may threaten to derail the current bullish narrative.

Find out about the key risks to this Charter Communications narrative.

Build Your Own Charter Communications Narrative

If the current story does not match your own thinking, or if you would rather analyze the numbers yourself, you can shape your own perspective in just a few minutes, and Do it your way.

A great starting point for your Charter Communications research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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