Citi cuts Charter target, opens ‘negative catalyst watch’

Citi lowered the firm’s price target on Charter to $300 from $340 and keeps a Neutral rating on the shares. The analyst also opened a “90-day negative catalyst watch” on the shares. The firm sees risk to Charter’s operating results from a possible Affordable Connectivity Program program discontinuation given the company’s elevated exposure to the program. Citi believes the ACP program is likely to be discontinued in the absence of forward progress for the proposed legislation. It has a below-consensus outlook for Charter’s broadband subscriptions over the next 12 months, contributing to below-consensus revenue and EBITDA forecasts in 2024 and 2025. The broadband environment still seems challenging from slowing industry growth and ongoing competition, the analyst tells investors in a research note.