Charter Communications (CHTR): Valuation Check as Subscriber Weakness, Cost Pressures and Downgrades Drive Volatility

Charter Communications (CHTR) is heading into its UBS Global Media and Communications Conference appearance with investors still focused on weak broadband momentum, shrinking video revenue, and higher costs that have already pressured the stock this year.

See our latest analysis for Charter Communications.

The stock has shown a short burst of strength into the UBS conference, with a 1 day share price return of 3.98 percent and a 7 day share price return of 6.67 percent. However, this follows a steep year to date share price decline of 38.95 percent and a 1 year total shareholder return of negative 43.65 percent, underscoring that momentum is still fragile despite modest revenue and earnings growth.

If Charter’s recent volatility has you rethinking concentration risk, it could be worth exploring how other media and communications names stack up alongside fast growing stocks with high insider ownership.

So with Charter now trading at a steep discount to analyst targets but still battling subscriber losses and rising costs, is the market overlooking a value opportunity or already pricing in lackluster growth ahead?

Most Popular Narrative Narrative: 32.3% Undervalued

With Charter closing at $213.29 versus a narrative fair value near $315, the spread reflects cautious growth assumptions and a modest re rating in mind.

The analysts have a consensus price target of $391.9 for Charter Communications based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $500.0, and the most bearish reporting a price target of just $223.0.

Read the complete narrative.

Analysts are quietly baking in rising margins, steady earnings growth and a richer future earnings multiple. Want to see how those moving parts really fit together?

Result: Fair Value of $314.94 (UNDERVALUED)

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

However, structural broadband headwinds and Charter’s sizable debt load still loom as catalysts that could undermine margin expansion and limit any potential re rating.

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

Build Your Own Charter Communications Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in under three minutes: Do it your way.

A great starting point for your Charter Communications research is our analysis highlighting 3 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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