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Charter Communications Faces Analyst Warnings on Broadband Revenue Challenges

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Citigroup analyst Michael Rollins downgraded Charter Communications Inc (NASDAQ:CHTR) from Neutral to Sell and lowered the price target from $280 to $255. The stock fell on Wednesday.

The analyst noted that Charter faces risks to both estimates and valuation as the organic broadband environment becomes tougher relative to consensus expectations.

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The discontinuation of the Affordable Connectivity Program (ACP) is likely to exacerbate broadband subscriber and revenue headwinds over the next 12 months, and consensus 2025 EBITDA expectations seem too optimistic, as per Rollins.

The reduction in his target price reflects an FV/EBITDA multiple contraction to 6.0x on his below-consensus EBITDA outlook for 2025, partly offset by some …

Full story available on Benzinga.com

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