Bernstein Downgrades Charter to Outperform with PT to $350 from $380.

Bernstein Downgrades Charter to Outperform with PT to $350 from $380.

In a recent development, Bernstein Research has downgraded its price target for Charter Communications, Inc. (CHTR) from $380 to $350. The move reflects the analyst's concerns about the company's ability to manage the ongoing challenges in the broadband market, particularly the impact of the ACP end and the sustained subscriber losses at cable operators Bernstein lowers U.S. telecom stock targets on rising competition^[2].

The downgrade comes amidst mounting competitive pressures across broadband markets, as fixed wireless access (FWA) and fiber continue to gain traction. Charter and Comcast together shed 550,000 residential broadband subscribers in the first half of 2025, highlighting the intense competition in the sector Bernstein lowers U.S. telecom stock targets on rising competition^[2]. Bernstein expects this trend to continue, with AT&T's upcoming spectrum deployment likely to exacerbate the subscriber losses for Charter and Comcast.

Despite these challenges, Bernstein maintains that Charter's fundamentals remain intact, citing stable to growing revenue and EBITDA, as well as a substantial increase in free cash flow expected as capital spending declines starting in 2026 Bernstein lowers U.S. telecom stock targets on rising competition^[2]. However, the analyst cautions that the pace of fiber buildouts may slow eventually, but the impact of FWA is expected to be prolonged for cable operators.

The downgrade follows a securities fraud class action lawsuit against Charter, alleging that the company failed to disclose material events and the impact of the ACP end on its business operations and prospects. Investors who suffered losses are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights Charter Communications, Inc. (CHTR) Investors Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit^[1].

Overall, the downgrade reflects Bernstein's view that while Charter's fundamentals are sound, the competitive landscape in the U.S. telecom sector is becoming increasingly challenging, and investors should be prepared for ongoing headwinds.