Charter Communications (CHTR) Stock Forecast & Price Target

Charter Communications possesses a robust market position, serving approximately 58 million homes and businesses in the U.S. with its Spectrum brand, which includes 29 million residential and 2 million commercial customer accounts. The company is projected to experience significant improvements in free cash flow yield, increasing from around 14% this year to over 25% by 2028, driven by moderate growth assumptions, declining capital expenditures, and enhanced broadband subscriber additions primarily due to rural expansion and competitive pricing strategies. Furthermore, Charter's integrated value proposition, which combines various services and emphasizes cost savings through Spectrum Mobile, positions the firm favorably to maintain stable broadband share in the face of emerging competition while advancing broadband technologies.

Charter Communications reported a decline in EBITDA by 1.5% to $5,561 million, which was $27 million below expectations, while revenues fell by 0.9% to $13,672 million amidst ongoing challenges in broadband penetration. The firm has experienced a deterioration in residential broadband net additions, leading to a revised forecast predicting a loss of 296,000 residential broadband subscribers for 2026, up from an earlier projection of 246,000, alongside an anticipated decline in average revenue per user (ARPU). As competitors aggressively expand their fiber and fixed wireless access (FWA) offerings, Charter faces significant risks in maintaining its broadband customer base, highlighted by a loss of 109,000 residential broadband subscribers that surpassed consensus expectations.