8/12/2025, 11:52:11 AM | za.investing.com | news

Charter Communications stock rating reiterated by Bernstein at Outperform

Bernstein SocGen Group has reiterated its Outperform rating on Charter Communications (CHTR) with a price target of $380.00, despite the stock trading at $258.77 and falling over 10% since the upgrade. The firm believes Charter is undervalued based on its Fair Value model and expects ARPU growth to offset projected subscriber losses of over 1 million in 2025. While acknowledging potential EBITDA pressure in the second half due to increased spending on broadband and mobile customer acquisition, Bernstein projects full-year EBITDA growth. The company currently generates $55.22 billion in revenue and $22.18 billion in EBITDA. Bernstein also notes that Charter’s free cash flow has historically been below interest expense from 2023 to 2025, but expects this to reverse in 2026 with declining capital expenditures. In a separate development, Charter suspended its share repurchase agreement with Advance/Newhouse Partnership, effective after the next closing date, pending the completion or termination of a transaction outlined in a JO:NTUJ Agreement dated May 16, 2025, involving Charter, Charter Communications Holdings, LLC, and Cox Enterprises, Inc. The transaction has been approved by shareholders with over 99% voting in favor. UBS has lowered its price target to $355 from $425, maintaining a Neutral rating due to weaker-than-expected second-quarter results, including 0.6% year-over-year revenue growth and a 0.1% EBITDA decline (excluding items), compared to 4.8% growth in the first quarter.