Charter Communications, Inc. (CHTR), headquartered in Stamford, Connecticut, is a leading player in broadband connectivity and cable services. Valued at $55.2 billion by market cap, the company, recognized for its Spectrum brand, offers an extensive array of services, including broadband, video, mobile, and voice solutions, to both residential and business clients.
Shares of CHTR have significantly underperformed the broader market over the past year. The stock has declined 4.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31%. In 2024, the stock is down marginally, while the SPX has gained 25.2% on a YTD basis.
Narrowing the focus, CHTR's has also trailed the Communication Services Select Sector SPDR ETF (XLC). The exchange-traded fund has gained 36.1% over the past year and returned 33.3% on a YTD basis.
On Nov. 13, CHTR saw a rise of more than 3% after announcing an all-stock deal to acquire Liberty Broadband.
On Nov. 1, CHTR shares jumped more than 11% after posting Q3 earnings. The company exceeded both its top line and bottom-line projections.
For the current fiscal year, ending in December, analysts expect CHTR’s EPS to grow 9.6% to $32.87 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing on two other occasions.
Among the 24 analysts covering CHTR stock, the consensus rating is a “Hold.” That’s based on eight “Strong Buy” ratings, 11 “Holds,” and five “Strong Sells.”
The current consensus is slightly more bullish than a month ago when seven analysts gave the stock a “Strong Buy.”
On Nov. 4, RBC Capital Markets raised its price target for Charter Communications to $390 from $345, while maintaining a “Sector-Perform” rating. This adjustment follows the company’s strong third-quarter earnings, which exceeded both RBC and consensus expectations for subscriber growth and financial performance. The price target increase reflects positive financial modeling and deferred capital expenditures, which are expected to free up capital for stock buybacks.
The mean price target of $405.52 represents a 4.4% premium compared to CHTR’s current price levels. The Street-high price target of $660 suggests an ambitious upside potential of 70%.
