UPDATE: Competition Takes a Bite Out of Charter Communications (CHTR), PT Lowered to $740 at BofA Securities

(Updated - January 13, 2022 9:02 AM EST)

BofA Securities analyst Jessica Reif Ehrlich lowered the price target on Charter Communications (NASDAQ: CHTR) to $740.00 (from $850.00) while reducing 4Q21 broadband net add forecasts in the wake of T-Mobile and Frontier having pre-announced accelerated home broadband and fiber net adds and AT&T reporting healthy fiber net adds.

The analyst reiterated a Buy rating, stating "We are also lowering our 2022 and beyond internet net add forecasts for Charter based on our expectation that: (1) pull-forward of demand that drove outsized gains from 2Q20 through 2Q21 will still have a lingering impact in at least 1H22 and perhaps through all of 2022, (2) incremental gains from fixed wireless broadband providers will grow in 2022 as both T-Mobile and Verizon ramp offerings and (3) fiber builds and newly marketed fiber competition will reduce Charter’s capacity to capture outsized share gains. Our new 2022 forecast is now 916k total internet net adds (vs. 1.2mn prev.), which places our 2020-2022E avg. annual net adds at 1.4mn, closer to the company’s avg. annual gains of 1.3mn during the 2017-2019 period."

You May Also Be Interested In

• Bayerische Motoren Werke AG (BMW:GR) (BMWYY) PT Lowered to EUR85 at HSBC
• Academy Sports & Outdoors Inc. (ASO) PT Raised to $63 at Truist Securities
• Cardinal Health (CAH) PT Raised to $125 at Argus