Demystifying Charter Communications: Insights From 6 Analyst Reviews

Analysts' ratings for Charter Communications CHTR over the last quarter vary from bullish to bearish, as provided by 6 analysts.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Charter Communications, revealing an average target of $399.17, a high estimate of $500.00, and a low estimate of $320.00. Observing a downward trend, the current average is 1.92% lower than the prior average price target of $407.00.

Decoding Analyst Ratings: A Detailed Look

The standing of Charter Communications among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Charter Communications. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Charter Communications compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Charter Communications's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Charter Communications's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Charter Communications analyst ratings.

Get to Know Charter Communications Better

Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 57 million US homes and businesses, around 35% of the country. Across this footprint, Charter serves 29 million residential and 2 million commercial customer accounts under the Spectrum brand, making it the second-largest US cable company behind Comcast. The firm also owns, in whole or in part, sports and news networks, including Spectrum SportsNet (long-term local rights to Los Angeles Lakers games), SportsNet LA (Los Angeles Dodgers), SportsNet New York (New York Mets), and Spectrum News NY1.

Key Indicators: Charter Communications's Financial Health

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Over the 3 months period, Charter Communications showcased positive performance, achieving a revenue growth rate of 1.57% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 10.53%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Charter Communications's ROE stands out, surpassing industry averages. With an impressive ROE of 9.88%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Charter Communications's ROA excels beyond industry benchmarks, reaching 0.98%. This signifies efficient management of assets and strong financial health.

Debt Management: Charter Communications's debt-to-equity ratio stands notably higher than the industry average, reaching 6.14. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.