Charter Communications (CHTR) Stock Forecast & Price Target

Charter Communications, stemming from the merger of three legacy cable companies, currently serves approximately 58 million homes and businesses in the U.S., capturing around 35% of the market. The company's anticipated free cash flow yield is projected to rise significantly from about 14% this year to over 25% by 2028, supported by improved broadband subscriber growth driven by rural expansion and cost efficiencies contributing to EBITDA growth. Furthermore, Charter's strategic investments in broadband access and bundled services, alongside its ownership of key sports and news networks, are expected to help maintain stable market share and enhance the overall value proposition for customers.

Charter Communications is facing significant financial challenges, evidenced by a reported revenue decline of 0.9% to $13.672 billion and a concurrently declining EBITDA of 1.5%, falling short of expectations. The company's broadband segment has struggled with net losses of 109,000 subscribers, exceeding consensus estimates, and projections for future residential broadband net additions have been revised downwards, indicating a potential continued deterioration in trends. Furthermore, the ongoing competitive pressure from expanding fiber and fixed wireless access services raises concerns about Charter's ability to sustain its market position and revenue growth in the face of these headwinds.