John Hodulik, an analyst from UBS, maintained the Hold rating on Charter Communications. The associated price target remains the same with $355.00.
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John Hodulik has given his Hold rating due to a combination of factors impacting Charter Communications. The company is expected to experience a slight decline in EBITDA in the second half of the year, with revenue and EBITDA growth projections remaining modest. This is attributed to a slowdown in ARPU growth and gradual cost efficiencies. Despite a seasonal boost in broadband, Charter is anticipated to continue facing competitive pressures and a slower housing market, which could lead to broadband subscriber losses.
Additionally, while Charter’s video market performance is expected to improve with new streaming and linear offers, residential revenues are projected to decline due to ongoing subscriber losses and slower ARPU growth. The business segment also faces challenges, with small and medium business revenues expected to decline amid competition, although enterprise growth remains steady. The company’s increased share buybacks and free cash flow projections provide some positive outlook, but overall, these mixed factors contribute to the Hold rating.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CHTR in relation to earlier this year.