Wells Fargo Resumes Charter Coverage with Equal Weight Rating, Sets Price Target at $300.

Wells Fargo has resumed coverage of Charter Communications (CHTR) with an "Equal Weight" rating and a price target of $300. The bank values Charter at a higher enterprise value-to-EBITDA (EV/EBITDA) ratio of 5.9x compared to its rivals, citing the company's better subscriber trends and potential for EBITDA growth.

Wells Fargo & Company has resumed coverage of Charter Communications, Inc. (NASDAQ: CHTR) with an "Equal Weight" rating and a price target of $300. The bank, in its recent analysis, values Charter at a higher enterprise value-to-EBITDA (EV/EBITDA) ratio of 5.9x compared to its rivals. This valuation is based on Charter's better subscriber trends and potential for EBITDA growth, as cited by the bank [1].

Charter Communications is a broadband and cable company serving over 57 million homes and businesses across 41 states under the Spectrum brand. The company has been facing challenges, including a recent decline in internet customers and revenue. However, Wells Fargo believes that Charter's strategic partnership with Cox Communications, which aims to create an industry leader in mobile, broadband communications, and seamless video entertainment, could help the company navigate these challenges [1].

The bank's optimism is reflected in its EV/EBITDA ratio, which is higher than that of its competitors. This indicates that Wells Fargo sees value in Charter's current operations and future growth prospects. The bank also notes that Charter's recent fixed-income offerings, totaling nearly US$2 billion, provide the company with the flexibility to address ongoing litigation and operational risks [3].

However, the recent class action lawsuits against Charter and its executives, alleging violations of federal securities laws, have raised concerns about the company's management credibility and near-term sentiment [2][3]. These lawsuits highlight ongoing risks to Charter's narrative, particularly in how effectively it can offset the challenges caused by the end of the Affordable Connectivity Program and reverse recent customer declines.

Despite these challenges, Wells Fargo's optimistic rating and price target suggest that the bank sees potential for Charter to stabilize and grow its broadband subscriber base and leverage its network and mobile offerings. The bank's analysis indicates that Charter's operational recovery and growth initiatives could be key short-term catalysts for the company.

References:
[1] https://finance.yahoo.com/news/wells-fargo-resumes-charter-communications-123937531.html
[2] https://www.globenewswire.com/news-release/2025/08/28/3141030/34548/en/Deadline-Alert-Charter-Communications-Inc-CHTR-Investors-Who-Lost-Money-Urged-To-Contact-Glancy-Prongay-Murray-LLP-About-Securities-Fraud-Lawsuit.html
[3] https://finance.yahoo.com/news/does-charter-chtr-legal-scrutiny-100643900.html