Charter Communications (CHTR) Stock Forecast & Price Target

Charter Communications demonstrates a positive financial outlook with its projected free cash flow yield increasing from approximately 14% this year to over 25% by 2028, primarily driven by anticipated declines in capital expenditures and improvements in broadband subscriber growth. The company expects significant gains in broadband net additions, particularly through fixed wireless access and fiber offerings, indicating strong customer demand and competitive pricing strategies. Additionally, Charter's rural expansion efforts and the integration of a diverse array of video streaming services into its offerings enhance its value proposition, positioning it favorably against competitors in the evolving telecommunications landscape.

Charter Communications has reported a decline in revenue by 0.9%, totaling $13,672 million, alongside a decrease in EBITDA by 1.5% to $5,561 million, which fell short of previous expectations. The company's broadband metrics are concerning, with a projected decrease in residential broadband net additions to -296,000 by 2026 and a reduction in average revenue per user (ARPU) forecasted to 1.6%, amid strong competition from Telco Fiber and fixed wireless access providers. Additionally, the recent trend of higher broadband net losses and lower promotional rates could further erode the company's market position, especially as it navigates its ongoing challenges in customer acquisition and retention.