Charter Communications (CHTR) Stock Forecast & Price Target

Charter Communications, the second-largest cable company in the U.S., is positioned for substantial financial growth, with its free cash flow yield projected to increase from approximately 14% in the current year to over 25% by 2028, driven by moderate growth assumptions and declining capital expenditures. The firm is expected to experience a rebound in broadband subscriber additions due to rural expansion strategies and improved cost efficiency, which will contribute to low single-digit EBITDA growth. Additionally, Charter's strategic offerings, including savings from Spectrum Mobile and an integrated video approach, enhance its competitive edge in maintaining stable broadband market share despite increasing competition.

Charter Communications experienced a decline in both revenue and EBITDA, with revenues falling 0.9% to $13,672 million and EBITDA decreasing 1.5% to $5,561 million, which was below expectations. The company's residential broadband net additions worsened year-over-year, leading to a revised forecast of -296,000 for 2026, alongside a potential risk to average revenue per user (ARPU) growth, reducing the expectation to 1.6%. The competitive landscape is intensifying with Telco Fiber and fixed wireless access (FWA) expansion, posing significant challenges for Charter as it struggles to maintain broadband trends amid lower promotional and regular pricing strategies.