Charter Communications (CHTR) Stock Forecast & Price Target

Charter Communications, the result of a 2016 merger, serves approximately 58 million homes and businesses in the U.S., accounting for around 35% of the country’s market, with a solid customer base of 29 million residential and 2 million commercial accounts under the Spectrum brand. The company's free cash flow yield is expected to increase significantly, from approximately 14% this year to over 25% by 2028, driven by improvements in broadband subscriber growth, operational efficiency leading to EBITDA growth, and decreasing capital expenditures. Charter's competitive positioning is further supported by its successful rural expansion, attractive pricing strategies in broadband access, and the integration of popular streaming services, which should help stabilize its broadband market share amidst rising competition.

Charter Communications experienced a revenue decline of 0.9% to $13.672 billion, coupled with a 1.5% decrease in EBITDA to $5.561 billion, falling short of previous expectations. The company faced significant challenges in its broadband segment, highlighted by a year-over-year worsening in residential broadband net adds and an adjustment of its 2026 forecast to reflect an anticipated loss of 296,000 net additions. Additionally, increasing competition in the fiber market may exacerbate these trends, with promotional rates appearing lower than previous year offerings, indicating potential further deterioration in broadband net additions.