Jeffrey Wlodarczak, an analyst from Pivotal Research, reiterated the Buy rating on Charter Communications. The associated price target is $300.00.
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Jeffrey Wlodarczak has given his Buy rating due to a combination of factors despite the recent challenges faced by Charter Communications. The company reported weaker than expected third-quarter results, including accelerated data subscriber losses and moderate revenue and EBITDA declines. However, Charter’s offering remains competitively priced, particularly in the converged wireless and wireline market, which could provide long-term value.
Wlodarczak acknowledges the current competitive pressures from fixed wireless access and fiber builds, but he believes that Charter’s shares are undervalued at the new target price of $300. This valuation is based on a conservative forecast and a reduced terminal EBITDA multiple in the discounted cash flow valuation. Despite the challenges, the potential for significant free cash flow growth and the possibility of a future dividend make Charter an attractive investment for patient investors.
Wlodarczak covers the Communication Services sector, focusing on stocks such as Comcast, Alphabet Class C, and Charter Communications. According to TipRanks, Wlodarczak has an average return of 3.8% and a 52.62% success rate on recommended stocks.
In another report released on October 28, Bernstein also maintained a Buy rating on the stock with a $350.00 price target.