Headquartered in Stamford, Connecticut, Charter Communications, Inc. (CHTR) is a leading broadband connectivity and cable operator with a market cap of $50.23 billion. Known for its Spectrum-branded services, Charter provides a comprehensive suite of broadband, video, mobile, and voice solutions to residential and business customers.
Shares of CHTR have significantly underperformed the broader market over the past year. The stock has declined 16% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. In 2024, the stock is down 10.3%, while the SPX has gained 18.1% on a YTD basis.
Narrowing the focus, CHTR's underperformance is evident when measured against the Communication Services Select Sector SPDR ETF (XLC). The exchange-traded fund has gained 20.4% on a YTD basis.
CHTR reported Q2 earnings on Jul. 26. The company reported a profit of $1.23 billion, or $8.49 per share, surpassing Wall Street expectations of $7.55 per share. Also, the company's revenue of $13.69 billion exceeded analysts’ estimates of $13.62 billion. Charter Communications shares surged 15% following better-than-expected results.
For the current fiscal year, ending in December, analysts expect CHTR’s EPS to grow 8.4% to $32.52 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,” slightly less bullish than “Moderate Buy” three months ago. That’s based on seven “Strong Buy” ratings, 12 “Holds,” and five “Strong Sells.”
On Jul. 29, Morgan Stanley analyst Benjamin Swinburne maintained a “Hold” rating on Charter Communications, with a price target of $360, which indicates a 3.2% upside from the current levels.
The mean price target of $372.76 represents a 6.9% premium compared to CHTR’s current price levels. The Street-high price target of $660 suggests an ambitious upside potential of 89.3%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
