KeyBanc upgrades Charter with broadband trends improving

KeyBanc last night upgraded Charter (CHTR) to Overweight from Sector Weight with a $500 price target The stock is well off its lows, but can continue to work higher as broadband subscriber trends improve primarily as a function of lapping Affordable Connectivity Program, continued growth in rural, and underlying subscriber declines being mostly stable, the analyst tells investors in a research note. In addition, Charter’s cost efficiencies can continue to drive modest EBITDA growth in 2025 while its capital spending peaks next year, and declines thereafter. KeyBanc believes Charter has the ability to produce nearly $8B in free cash flow in fiscal 2027, making shares “look very attractive.”