Charter Communications, the Communication Services sector company, was revisited by a Wall Street analyst on October 31. Analyst John Hodulik from UBS maintained a Hold rating on the stock and has a $355.00 price target.
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John Hodulik has given his Hold rating due to a combination of factors affecting Charter Communications. The company is facing increased competitive pressures, particularly in its broadband segment, where subscriber additions have declined year-over-year. Despite improvements in churn rates, the expansion of fixed wireless access and telco fiber are expected to keep core broadband subscriptions under pressure.
Additionally, Charter’s financial outlook is challenged by anticipated declines in revenue and EBITDA, with management expecting higher declines in the fourth quarter. While there are some positive aspects, such as lower capital expenditures and taxes contributing to free cash flow, the overall growth prospects remain modest. The company’s mobile segment shows solid performance, but the broader competitive landscape and financial metrics suggest a cautious approach, justifying the Hold rating.
In another report released today, Bernstein also downgraded the stock to a Hold with a $280.00 price target.
CHTR’s price has also changed dramatically for the past six months – from $391.860 to $233.840, which is a -40.33% drop .