KeyBanc upgrades Charter Communications, says stock can rally more than 30%
KeyBanc sees multiple reasons for optimism on Charter Communications . Analyst Brandon Nispel upgraded the broadband provider to overweight from sector weight. Nispel also gave shares a $500 price target, which implies 32.1% upside from Wednesday’s close. “CHTR is well off its lows, but we think the stock can continue to work higher,” the analyst wrote to clients in a note. Nispel said Charter should see some improvement in broadband subscriptions in 2025, helped by an acceleration of rural growth. That comes despite the U.S. government’s Affordable Connectivity Program focused on discounted internet ending this year. The analyst also called the company’s cost efficiency work “under-appreciated,” which can in turn help EBITDA. What’s more, free cash flow should be able to rise as capital expenditures fall, he said. CHTR YTD mountain Charter, year to date Nispel pointed out that Charter currently trades at about 6.6 times its adjusted EBITDA estimates for 2026. That’s below the peer average of around 7.7 times, he noted. “We believe CHTR is attractively valued and expect its Broadband subscriber net adds to improve in ’25 and beyond due to the lapping of ACP, internal initiatives being put in place, CHTR’s rural build accelerating, and the overall market becoming less competitive. We also appreciate the cost initiatives CHTR has been able to implement, which are driving greater operating efficiency,” he said. Shares rose close to 1% before the bell on Thursday following the upgrade. Charter has slid 2.6% year to date, bucking the broader market’s uptrend for 2024. Analyst sentiment on the stock is mixed. Of the 26 who cover Charter, seven rate it a buy or strong buy, while 14 others have it as a hold, LSEG data shows. The remaining five analysts have an underperform or sell rating on the stock.
