Shares of Charter Communications Inc (NASDAQ:CHTR) continued to slide after the company on Friday reported downbeat third-quarter results.
Here are some key analyst takeaways:
- KeyBanc Capital Markets analyst Brandon Nispel downgraded the rating from Overweight to Sector Weight.
- Benchmark analyst Matthew Harrigan reiterated a Buy rating, while cutting the price target from $475 to $425.
Check out other analyst stock ratings.
KeyBanc Capital Markets: Charter Communications reported its revenues, adjusted EBITDA and Broadband/Wireless net adds short of expectations, Nispel said in the downgrade note. The company's broadband subscriber growth underperformed expectations, despite changes in its go-to-market, pricing and packaging strategies, he added.
The analyst expects free cash flows to grow from an estimated $4.8 billion in 2025 to $6.8 billion in 2027, driven by a decline in capital spending from $11.5 billion to $9.2 billion. He stated, however, that Charter Communications seems to be "throwing everything at the wall with nothing sticking," and while its free cash flows are likely to grow, "the fundamental trajectory appears out of the Company’s control."
Benchmark: Charter Communications' revenues contracted by 0.9% to $13.7 billion and EBITDA declined by 1.5% to $5.561 billion, Harrigan said. Total broadband losses of 109,000 were higher than the expected 81,000, he added.
The company's cash flow came in at $1,621 million, versus Benchmark's estimate of $919 million, the analyst stated. "Despite heightened fixed-wireless and new fibre passing competition, Charter should maintain reasonably stable broadband share over the medium term especially through bundled broadband mobile value, and sustained network evolution delivering multi-gigabit speeds," he further wrote.
CHTR Price Action: Shares of Charter Communications had declined by 6.45% to $218.76 at the time of publication on Monday.
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