UPDATE: ISI Group Reiterates Charter Communications on Buy-In Speculation from Liberty Media

In a report published by ISI Group, analyst Patrick Villani reiterated his Buy rating and $100 price target on Charter

. ISI Group reported that, “Charter Communications shares jumped +8.8% on Monday with the market chatter that Liberty Media (LMCA, Buy, PT: $127) might invest $2.5B for a 25% stake. Allegedly, this deal is not expected to provide proceeds to CHTR; LMCA would be buying stakes held by Apollo and Oaktree, which bought distressed CHTR debt and guided the company through the bankruptcy process. If Liberty Media does get into Charter, we think there is a path to control for Liberty given Charter's expected FCF and ability to buyback stock, thereby increasing Liberty's stake. Moreover, as John Malone, Executive Chairman of LMCA and its largest voting shareholder has done in Europe through Liberty Global (LBTYA, Strong Buy, PT: $78), Charter could become an industry consolidator in the U.S.” Shares of Charter closed at $98.04 on Monday.