Analyst Jessica Reif Ehrlich from Bank of America Securities reiterated a Buy rating on Charter Communications (CHTR – Research Report) and increased the price target to $500.00 from $450.00.
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Jessica Reif Ehrlich has given her Buy rating due to a combination of factors influencing Charter Communications’ performance. The company is expected to see improvements in broadband subscriber losses, driven by the continued success of its Spectrum Life Unlimited offering and the absence of Affordable Connectivity Program-related losses. Additionally, Charter’s expansion into rural areas and the introduction of a new seamless video offering are anticipated to reduce churn and enhance subscriber numbers.
Financially, Charter is poised for stability with a modest reduction in revenue estimates offset by corresponding expense reductions, ensuring no impact on EBITDA. The company’s strategic shift towards video, following successful renegotiations of programming contracts, is expected to yield better results in the latter half of 2025. Furthermore, the anticipated merger with Cox in 2026 is projected to boost revenue growth, improve margins, and enhance free cash flow, justifying the raised price objective to $500.