Charter upgraded to Peer Perform at Wolfe on bonus depreciation benefit

As previously reported, Wolfe Research upgraded Charter (CHTR) to Peer Perform from Underperform without a price target. President Trump’s “Big Beautiful Bill” seems likely to reinstate 100% bonus depreciation, notes the analyst, who estimates the five major connectivity providers could cumulatively gain $10.5B of cash tax relief in 2025 alone. With peer-high infrastructure capital intensity and financial leverage, Charter could benefit most as bonus depreciation could add $1.8B, or about $11 per share to free cash flow in 2025, the analyst tells investors. However, though Charter should see the greatest benefit from bonus depreciation, competition in broadband “looks brutal for years to come,” the analyst adds in explaining why the firm does not rate shares an Outperform. In addition to upgrading Charter to Peer Perform, Wolfe upgraded the Cable group to Market Weight from Underweight.