Charter Communications (CHTR) Stock Forecast & Price Target

Charter Communications, formed through the 2016 merger of three established cable companies, serves approximately 58 million homes and businesses, positioning itself as the second-largest cable provider in the U.S. The company's financial outlook is bolstered by a projected increase in free cash flow yield from around 14% this year to over 25% in 2028, driven by improvements in broadband subscriptions, particularly through rural expansion, and rising cost efficiency leading to EBITDA growth. Furthermore, Charter's strategic investments in fixed wireless access and competitive pricing, along with a robust multi-gigabit broadband network, are expected to help maintain its market share despite increasing competition.

Charter Communications has reported a decline in EBITDA, which fell by 1.5% to $5,561 million, coming in $27 million below expectations, while revenues decreased by 0.9% to $13,672 million. The firm's residential broadband performance is concerning, with net additions expected to worsen, leading to a revised forecast of -296K for 2026, alongside a potential decline in average revenue per user (ARPU) growth. The competitive landscape is intensifying, particularly with Telco Fiber and Fixed Wireless Access (FWA) expansions, which may further exacerbate challenges related to broadband net additions and overall market position.