UPDATE: Charter Communications (CHTR) PT Lowered to $680 at Morgan Stanley Citing Wireless and Rural

Morgan Stanley analyst Benjamin Swinburne lowered the price target on Charter Communications (NASDAQ: CHTR) to $680.00 (from $740.00) citing increased wireless growth expectations and Charter's rural expansion.

The analyst reiterated an Equalweight rating, stating "Charter's wireless business is EBITDA negative as a result of its high and acceleration growth, and that pressure will continue although moderate in '22. We now expect Charter to end 2022 with ~5mm mobile lines, which at a 2.5 lines / customer assumption translates into 6-7% F2M penetration. We now assume that the $5bn RDOF expansion is a $6bn rural expansion, with $1bn of that $6bn invested in '22." "The aggregate impact of our forecast changes is to lower full-taxed FCF/share in '22 by ~5-6% as a result of higher capital spending, and FCF in '22 is down about 20% from '21. Visibility into the rural expansion investment levels in '23 and beyond and the timing of flipping from dilution to accretion are low, but this is a muti-year project"

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