Charter Communications (CHTR) Stock Forecast & Price Target

Charter Communications, the second-largest US cable company serving approximately 58 million homes and businesses, is expected to experience significant growth driven by moderate expansion in broadband subscriptions, particularly due to rural market opportunities and improved service offerings in fixed wireless technologies. The company's free cash flow yield is projected to increase from around 14% in the current year to over 25% by 2028, alongside anticipated cost efficiencies and a decline in capital expenditures. Additionally, Charter's strategic focus on integrating bundled services, including Spectrum Mobile and various streaming options, positions the company favorably to maintain its broadband market share and enhance its value proposition to customers.

Charter Communications is facing challenges indicated by a decline in EBITDA by 1.5% to $5,561 million, which was $27 million below expectations, while revenues also fell by 0.9% to $13,672 million amid ongoing struggles in rural penetration that has decreased for 11 consecutive quarters. The company is projected to experience worsening residential broadband net additions, with a lowered forecast for 2026 expecting net losses of 296,000, coupled with a potential slowdown in Average Revenue Per User (ARPU) growth, now estimated at 1.6%. Furthermore, as competitors enhance their fiber and fixed wireless access offerings, there is a significant risk that Charter will continue to see its broadband customer base deteriorate alongside reduced promotional and regular pricing strategies.