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- Citi Research has upgraded Charter Communications (NASDAQ:CHTR) to "Neutral" from "Sell." They say their rating change is partly based on the current valuation and the expectation for a mixed operational performance for the company.
- "Charter is likely to remain in an ex-growth environment for revenue with ongoing headwinds for broadband and video volume, while Charter has room to moderately improve EBITDA generation on a multi-year basis from the combination of product mix shift, pricing actions, and efficiency programs," Citi said in their September 11 note.
- Citi also noted that CHTR's valuation has receded to an EV/EBITDA of ~6.4x, and said the core broadband operating environment for Q3 seems stable with prior commentary, and ACP retention seems to be going better than expected for the category.
- "Charter is targeting significant improvement in EBITDA during 2H24 with its previously announced efforts to reduce expenses that can also support flattish EBITDA for 2025. We still see risk for consensus expectations for 2025 broadband volume," they added.
- CHTR has an unchanged PT of $350 from Citi, implying an upside of 8%. Stock is down 17% YTD while the S&P 500 is up 15%.
More on Charter Communications
- Charter's New Strategy Puts Video Back Into The Profit Mix, And It Just Might Start Working Soon
- Charter Communications Q2 2024 Earnings: The Bull Thesis Remains Unchanged
- Charter Communications: Improved Cash Flow Outlook Largely Reflected In Valuation
- JPM analysts cheer Charter's lower ACP losses but brace for greater impact ahead
- Charter stock soars after impressing Wall Street with robust Q2 report
