Charter Communications (CHTR) Stock Forecast & Price Target

Charter Communications reported total revenue of $13.8 billion for the quarter, reflecting a 0.6% year-over-year increase, driven primarily by stronger broadband revenues despite a decline in video and mobile segments. Notably, while the company experienced higher internet losses than anticipated, it achieved 32,000 net internet additions year-over-year, indicating underlying growth in this essential area. Furthermore, with a manageable leverage ratio of 4.1x and the prospect of increasing free cash flow due to tax savings and reduced capital expenditures, Charter is positioned to sustain its stock buyback program at or above previous levels.

Charter Communications is experiencing a downward trend in its net subscriber growth, with broader net losses noted even when excluding the impacts of 50,000 ACP disconnects in the second quarter of 2024. The introduction of new pricing strategies nearly a year ago has not led to the anticipated improvements in subscriber retention, contributing to concerns about short-term visibility regarding future subscriber trends. Additionally, the firm's second-quarter EBITDA of $5.7 billion fell approximately 2% below expectations, reflecting weakened margins at 41.4%, which further compounds the challenges facing the company's financial outlook.