Charter Communications stock rating upgraded by Bernstein SocGen to Outperform

Published 28/07/2025, 07:52
Charter Communications stock rating upgraded by Bernstein SocGen to Outperform

Investing.com - Bernstein SocGen Group upgraded Charter Communications (NASDAQ:CHTR) from Market Perform to Outperform while lowering its price target to $380.00 from $410.00.

The upgrade comes despite Charter’s ongoing challenges in the broadband sector, where the company lost 111,000 residential broadband subscribers in Q2 2025. Bernstein SocGen noted these losses, when adjusted for non-voluntary disconnects, were in line with Q2 2024 excluding ACP impacts.

Charter’s mobile business remains a bright spot according to the research firm, contributing positively to both EBITDA and free cash flow, though its overall impact on the company’s financial performance remains limited.

Bernstein SocGen expects Charter’s financial outlook to improve in 2026 and more substantially in 2027 as capital expenditures decline. The firm projects free cash flow yield to exceed 10% in 2026 and reach mid-to-high teens in 2027.

The research firm acknowledged the dichotomy in Charter’s position, with challenged fundamentals on one side and an improving financial narrative on the other, ultimately concluding the company’s valuation is attractive despite ongoing competitive pressures in the broadband market.

In other recent news, Charter Communications Inc. released its second-quarter earnings for 2025. The company reported an earnings per share (EPS) of $9.18, which was below the forecasted $9.58. Despite the earnings miss, revenue aligned with expectations, reaching $13.77 billion and showing slight growth compared to the previous year. The earnings shortfall has raised concerns among investors regarding its implications for the company’s financial health. There were no reports of mergers or acquisitions involving Charter Communications during this period. Additionally, there were no analyst upgrades or downgrades reported for the company. These recent developments provide a snapshot of Charter Communications’ current financial performance.

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