Charter Communications Shares Slide On Rating Downgrade

Wells Fargo analyst Steven Cahall downgraded Charter Communications Inc CHTR to Underweight from Overweight with a price target of $665, down from $848, implying a 6% downside.
Cahall is now taking a more bearish stance on the Cable sector's outlook and thinks the sector faces more competition for broadband subscribers industry-wide as penetration is now high. Additionally, Telco's fiber builds will result in more passings and more competition for market share.
The analyst now thinks residential broadband growth will slow and that free cash flow estimates need to decrease.
Price Action: CHTR shares traded lower by 4.49% at $708.62 on the last check Friday.