Benchmark maintains buy rating, $450 target on Charter stock

Published 24/04/2025, 16:22
Benchmark maintains buy rating, $450 target on Charter stock

On Thursday, Benchmark analysts reiterated their Buy rating and $450.00 price target for Charter Communications (NASDAQ:CHTR) stock, representing significant upside potential for the $53.38 billion market cap company. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, trading at an attractive P/E ratio of 9.5x. The firm’s positive outlook on Charter stems from the company’s competitive bundled offerings, such as Spectrum Life Unlimited, which analysts believe cater to a cost-conscious U.S. consumer. Spectrum Life Unlimited provides two mobile lines at $30 each, coupled with 500 Mbps broadband service, as a non-promotional offering.

Charter’s CEO, Chris Winfrey, has expressed confidence in the company’s mobile product, touting it as the fastest in the U.S. market, leveraging advanced WiFi capabilities. Analysts also note that Charter’s operational results for 2025 are expected to be stable, with InvestingPro forecasting EPS of $37.49 for FY2025. The company maintains a GOOD overall financial health score, suggesting resilience against headwinds like the Affordability Connectivity Program (ACP) expiration. Discover more insights and 6 additional ProTips with an InvestingPro subscription, including exclusive access to comprehensive Pro Research Reports.

The research firm highlighted the potential for significant annual savings for households opting for Charter’s bundled services, which could approach $1,000. Additionally, there is an anticipation that mobile activities may see an uptick in the second quarter, as consumers might expedite their iPhone and other device purchases in anticipation of possible tariff impacts.

Benchmark analysts are looking forward to further details from Charter, particularly regarding efforts to integrate video products more seamlessly into its convergence strategy. This commentary is expected to be part of the company’s updates tomorrow.

In other recent news, Charter Communications has been in the spotlight with several developments. UBS analyst John Hodulik maintained a Neutral rating on Charter Communications, projecting flat revenue and a 1.0% year-over-year increase in EBITDA for the first quarter, slightly below consensus estimates. Meanwhile, Citi analysts issued a Buy rating, setting a price target of $425, emphasizing potential growth in free cash flow from 2025. Charter Communications and Comcast (NASDAQ:CMCSA) have also introduced a satellite-based messaging service through Spectrum Mobile and Xfinity Mobile, enhancing connectivity for customers in remote areas. Additionally, Spectrum Reach launched the Audience Reach Optimizer (ARO), a tool designed to improve advertising campaign precision by leveraging proprietary data. These recent developments reflect Charter’s strategic initiatives to enhance service offerings and optimize financial performance. Investors are closely monitoring these moves as the company navigates industry challenges and opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.