Charter Communications, Inc (NASDAQ:CHTR) stock gained by almost 5% on Monday as buyers lean into a rebound attempt in Communication Services, even while the broader tape stays mixed.
The Nasdaq is down 0.69% while the S&P 500 has shed 0.04%.
RBC Capital analyst Jonathan Atkin said Charter continues to face broadband pressure, weaker ARPU and rising costs, prompting him to lower his price target and trim financial estimates.
• Charter Communications shares are climbing with conviction. Why is CHTR stock up today?
Broadband Pressure Persists
Atkin maintained a Sector Perform rating on Charter and cut his price forecast to $150 from $160. He said Charter has not successfully slowed broadband subscriber losses, while ARPU declines and cost inflation have created fresh challenges.
Charter lost 172,000 broadband customers in the second quarter, worse than the 145,000 loss analysts expected. Broadband ARPU fell 1.7% year over year and came in below expectations, while free cash flow of $1 billion missed consensus by 12%.
RBC Cuts Estimates
Atkin now expects 2026 revenue of $54.11 billion (down from $54.22 billion) and fiscal 2027 revenue of $53.27 billion (down from $53.53 billion).
The analyst lowered RBC’s 2026 EBITDA estimate to $22.6 billion from $22.8 billion and its 2027 estimate to $22.3 billion from $22.6 billion. He also cut free cash flow estimates to $5.1 billion for 2026 and $6.2 billion for 2027.
He now expects Charter to lose 473,000 broadband customers in 2026 and 453,000 in 2027, up from prior loss estimates of 425,000 and 405,000, respectively.
Cost Cuts and Cox Deal In Focus
Atkin said a large cost-cutting program appears to be the next logical step as Charter deals with broadband share losses, fuel costs and employee-benefit inflation. He said the company may use AI automation for efficiency, but stronger action may be needed.
Atkin said Charter remains open to wholesale network partnerships, while staying committed to its capital-light mobile strategy through Verizon Communications Inc (NYSE:VZ) and T-Mobile US, Inc (NASDAQ:TMUS) partnerships.
He expects the Cox Communications deal to close in mid- to late August and sees a broader cost-transformation program following the close.
Technical Analysis
Even with Monday’s pop, Charter remains in a longer-term downtrend: it’s trading 4.1% below its 20-day SMA, 6.4% below its 50-day SMA, and still deeply below the 100-day and 200-day averages (down 25.5% and 34.6%, respectively). The 20-day SMA sitting below the 50-day SMA keeps the near-term trend bearish, and the 50-day below the 200-day confirms the "death cross" backdrop that’s been in place since August 2025.
CHTR Price Action
Charter Communications shares were up 4.18% at $128.47 at the time of publication on Monday, according to Benzinga Pro data.
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