Oppenheimer upgrades Charter to Outperform, calls Cox deal ‘major positive’

Oppenheimer upgraded Charter (CHTR) to Outperform from Perform with a $500 price target after the company announced it is acquiring Cox Communications at a purchase price that values the latter at $34.5B. Charter has been improving its balance sheet and will deleverage by another half turn upon deal close, notes the analyst. The firm expects substantial buybacks and a step down in capital expenditures will drive a “significant improvement” in free cash flow in 2027, says the analyst, who calls the Cox deal a “major positive” and estimates about $100 in free cash flow per share in 2030.