Wells Fargo has increased its price target for Charter Communications (CHTR, Financial) from $380 to $400, maintaining an Equal Weight rating on the company's stock. The financial firm highlights that Charter's recent strategic initiatives have successfully enhanced net additions and positioned the company favorably compared to its competitors.
Despite facing industry competition, Charter's operational execution is seen as reducing risks, according to Wells Fargo. The bank also notes that while it may take an additional two years to reach a pivotal point in free cash flow, Charter's market approach is currently showing positive outcomes.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Charter Communications Inc (CHTR, Financial) is $410.51 with a high estimate of $660.00 and a low estimate of $273.00. The average target implies an upside of 9.86% from the current price of $373.65. More detailed estimate data can be found on the Charter Communications Inc (CHTR) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Charter Communications Inc's (CHTR, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Charter Communications Inc (CHTR, Financial) in one year is $408.48, suggesting a upside of 9.32% from the current price of $373.65. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Charter Communications Inc (CHTR) Summary page.
CHTR Key Business Developments
Release Date: April 25, 2025
- Revenue: Increased by 0.4% year over year; 0.8% excluding advertising revenue.
- Adjusted EBITDA: Grew by 4.8% year over year.
- Net Income: $1.2 billion attributable to Charter shareholders, up from $1.1 billion last year.
- Capital Expenditures: $2.4 billion in the first quarter, down about $400 million from last year.
- Free Cash Flow: $1.6 billion, an increase of approximately $1.2 billion compared to last year's first quarter.
- Debt Principal: $93.6 billion with a weighted average cost of debt at 5.2%.
- Mobile Lines Added: 514,000 lines in the first quarter.
- Internet Customers: Lost 60,000 Internet customers in the first quarter.
- Video Customers: Declined by 181,000.
- Operating Expenses: Declined by 2.6% year over year.
- Programming Costs: Declined by 10.4% year over year.
- Advertising Revenue: Declined by 12.9%; excluding political, decreased by 5.1%.
- Rural Passings: Grew by 89,000 in the first quarter, totaling 902,000 subsidized rural passings.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Charter Communications Inc (CHTR, Financial) added over 500,000 Spectrum Mobile lines in Q1 2025, contributing to a 25% line growth over the past year.
- EBITDA growth accelerated to 4.8%, driven by strong mobile growth and improved service quality.
- The company continues to expand its fiber footprint, maintaining a steady pace of growth.
- Charter's fully converged network efficiently meets growing data demand, with significant investments in technology and employee training.
- The introduction of a new employee stock purchase plan aims to enhance employee engagement and retention.
Negative Points
- Revenue was relatively flat year over year, indicating challenges in achieving top-line growth.
- Charter lost 60,000 Internet customers in Q1 2025, reflecting competitive pressures in the market.
- Video customers declined by 181,000, despite efforts to improve bundling and product offerings.
- First quarter advertising revenue declined by 12.9%, primarily due to less political revenue and a challenging advertising market.
- The company faces ongoing competitive challenges from fiber overbuilders and mobile substitution.
