Charter Communications (CHTR) PT Lowered to $350 at Evercore ISI

Evercore ISI analyst Vijay Jayant lowered the price target on Charter Communications (NASDAQ: CHTR) to $350.00 (from $410.00) while maintaining a Outperform rating.

The analyst comments "For Charter, we are incrementally more confident in management’s ability to keep the vast majority of ACP customers given the newly announced retention offer of a free mobile line for a year, which could go a long way in lowering the ACP risk and even bringing in new connects, though this could also spread out the challenges with what is essentially another big promo roll-off to the middle of 2025. On financials, management remains confident in its ability to grow EBITDA for full-year 2024 though plans to de-lever closer to the mid-point of 4-4.5x vs. the historical comfort level of staying at the upper-end. While this limits buyback potential, Charter expects to maintain repurchases. Taking a step back, our longer-term view is that Charter is well positioned as a leading (and increasingly share-gaining) connectivity provider that has line of sight to a positive inflection in subs and FCF following the current investment cycle. That said, it’s hard to see sentiment improve until underlying operating trends improve, the ACP overhang is behind us, and there’s a clearer path to accelerating EBITDA and FCF growth. We trim our PT from $410 to $350 (6.8x 2024E EV/EBITDA)."

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