Charter placed on ‘Negative Catalyst Watch’ at JPMorgan

JPMorgan analyst Sebastiano Petti placed Charter Communications on “Negative Catalyst Watch” while keeping a Neutral rating on the shares with a $335 price target. The firm is cautious into the company’s Q1 results next week due to persisting broadband competition, weaker organic broadband trends, and the Affordable Connectivity Program overhang. While the end of the ACP program will likely weigh on broadband subscribers and EBITDA in 2024, this should not result in balance sheet risk and/or a debt downgrade, the analyst tells investors in a research note. However, a reduction in capital returns to dampen Charter’s leverage profile will likely not be well-received by equity investors, says JPMorgan.