Charter upgraded to Buy at BofA as ACP headwinds recede

BofA upgraded Charter (CHTR) to Buy from Neutral with a price target of $450, up from $385. ACP headwinds are largely behind the company and broadband sub trends should continue to improve, notes the firm, which is also reducing its capex estimate for 2024 and sees post 2025 capex to decline significantly, supporting the firm’s new higher free cash flow estimates. This should help drive ample capacity for buybacks post Charter’s negotiations around a deal with Liberty, which itself could drive a significant share count reduction, the analyst tells investors.