Good news for Charter Communications (CHTR) emerged. Though the communications company has been having some issues with linear television, its mobile and internet businesses are likely helping. And Citi Research upgraded its rating as a result. All of these points together gave Charter a fractional boost in share prices in Wednesday afternoon’s trading.
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A recent research note from Citi, unattributed to a single analyst, noted that it hiked the rating on Charter from its original Sell rating to its current rating of Neutral. While Charter’s operating performance in recent days has lent a hand to bolstering its rating, the real winner was the current valuation.
Broadband and video volume, the note from Citi detailed, would remain subject to “headwinds,” but its changing product mix will likely work to “…moderately improve EBITDA generation on a multi-year basis.” Its efforts to reduce expenses, meanwhile, have produced solid results in and of themselves.
Charter’s Operations Are a Mixed Bag
Yet, Charter’s operations are proving a bit of a mixed bag. Charter managed to get a renewal for AMC Networks’ programming, as well as its direct-to-consumer streaming service. That opens up AMC+ for no additional cost to current TV subscribers and opens it up as a paying option for internet-only Charter subscribers, allowing those who just want streaming service the ability to get in on AMC Networks’ content. It was not all good news, however.
Charter customers down in Georgia’s Beaufort County found it difficult, or even impossible, to call 911 via Charter voice service. Those impacted were advised to call the non-emergency dispatch number instead, which likely came as little comfort to those who were not able to call the emergency number for actual emergencies.
Is Charter a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on CHTR stock based on three Buys, nine Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 25.37% loss in its share price over the past year, the average CHTR price target of $368.25 per share implies 13.22% upside potential.
