Bernstein Maintains Buy Rating on Charter Communications, Sets $380 Price Target

Bernstein analyst Laurent Yoon reiterated a Buy rating on Charter Communications with a price target of $380. The company's Q2 revenue rose 0.6% YoY to $13.8 billion, supported by residential mobile service revenue growth of 24.9% and residential Internet revenue growth of 2.8%. Charter Communications provides broadband communications services, including Spectrum TV, Spectrum Internet, and Spectrum Voice.

Charter Communications (CHTR) released its Q2 2025 earnings, with mixed results that saw the company meet revenue expectations but fall short of earnings forecasts. The company reported a quarterly revenue of $13.77 billion, up 0.6% year-over-year (YoY), driven by a 24.9% increase in residential mobile service revenue and a 2.8% rise in residential Internet revenue [1]. However, adjusted earnings per share (EPS) were $9.18, missing analysts' consensus estimates by 6.1% [1].

Despite the mixed results, analysts have remained bullish on Charter Communications. Laurent Yoon from Bernstein reiterated a Buy rating on the stock with a price target of $380.00, citing the company's strong growth in mobile and Internet services [2]. Yoon's positive outlook is supported by the company's strategic focus on integrating the pending Cox Communications acquisition and leveraging new technology investments [1].

Looking ahead, Charter Communications faces several challenges, including persistent competition, non-pay churn, and the impact of the discontinued Affordable Connectivity Program. However, the company's strategic initiatives, such as AI-powered customer service and improved product packaging, are expected to drive future growth [1]. Additionally, the pending acquisition of Cox Communications is seen as a significant contributor to revenue, margin, and free cash flow per share [1].

Investors should closely monitor the progress of the Cox Communications acquisition, the impact of AI-powered customer service tools on operational costs, and the stabilization of internet subscriber trends in upcoming quarters [1]. Charter Communications currently trades at $263.85, down from $379.95 just before the earnings release [1].

References:
[1] https://finance.yahoo.com/news/chtr-q2-deep-dive-flat-031356198.html
[2] https://www.theglobeandmail.com/investing/markets/stocks/CHTR/pressreleases/34124557/bernstein-keeps-their-buy-rating-on-charter-communications-chtr/