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Investing.com - Goldman Sachs has assumed coverage of Charter Communications (NASDAQ:CHTR) with a Sell rating and a $223 price target, implying 15% downside potential. The cable giant, currently trading at $265.58 with a market cap of $40.66 billion, has seen its stock decline 23.5% over the past year. According to InvestingPro data, analyst targets range from $230 to $500, reflecting mixed sentiment in the market.
The investment bank cited intensifying competition in the wireline broadband market as a key concern for the cable operator. Goldman Sachs noted that Charter faces growing pressure from telecom operators pursuing wireless and fiber broadband convergence, as well as increased fixed wireless access availability. Despite generating substantial revenue of $55.22 billion in the last twelve months, the company trades at a relatively low P/E ratio of 7.08, potentially reflecting these competitive challenges.
Goldman Sachs forecasts continued broadband subscriber declines for Charter and sees limited broadband pricing growth due to competition from higher-quality fiber alternatives and lower-priced fixed wireless access options.
The firm believes Charter will struggle to grow its subscriber base in the near term and may need to maintain elevated investment levels to protect its market position.
Charter Communications , the second-largest cable network operator in the United States, recently announced its acquisition of Cox Communications, which is expected to close in mid-2026.
In other recent news, Charter Communications has priced $2 billion in senior secured notes through its subsidiaries, including $1.25 billion in notes due 2035 with a 5.850% interest rate and $750 million in notes due 2055 with a 6.700% interest rate. The company plans to use the proceeds for general corporate purposes, such as repaying certain debts and funding potential stock buybacks. Additionally, Charter Communications has resumed coverage by Wells Fargo with an Equal Weight rating, highlighting the company’s strong performance in the cable industry despite challenging conditions. In another development, Spectrum Reach, the advertising sales division of Charter Communications, has completed the acquisition of ShowSeeker to enhance its media buying processes. This acquisition is expected to expand Spectrum Reach’s marketing solutions across the United States. Meanwhile, Charles & Colvard has announced its Fiscal 2026 Executive Incentive Program, which includes the issuance of up to 1,338,000 restricted stock units to directors, employees, and key consultants. Participants in this program can choose between a mix of restricted stock and cash or receive their awards entirely in restricted stock. These developments reflect the ongoing strategic initiatives and financial maneuvers by these companies.
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