Pivotal Research analyst Jeffrey Wlodarczak reiterated a Buy rating on Charter Communications (CHTR) today and set a price target of $500. The company’s shares closed yesterday at $410.25, close to its 52-week high of $411.70.
Wlodarczak said:
“We are raising our target price from $425 to $500, driven primarily by a move to YE’20 target from a lesser extent an increase in our medium/long term data ARPU growth forecasts [as CHTR effectively leverages the cost efficient upgrade from ~200MB to 10GB (bi- directional) to drive higher data ARPU and market share gains]. We forecast solid results for the balance of the year as the company begins to fully realize the benefit of the substantial investments made in their plant/packages and promotions and the strong outlook for data growth. At our new Street high target CHTR would trade at 16X ’20 market cap /’20 free cash flow vs. 13X currently. We don’t view the CHTR investment thesis as rocket science.”
According to TipRanks.com, Wlodarczak is a 5-star analyst with an average return of 9.4% and a 61.9% success rate. Wlodarczak covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Liberty Media Corporation Series A Liberty Formula One, and Liberty Global PLC LiLAC Class A.
Currently, the analyst consensus on Charter Communications is a Moderate Buy with an average price target of $420.88.
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The company has a one-year high of $411.70 and a one-year low of $271.56. Currently, Charter Communications has an average volume of 921.8K.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is negative on the stock.
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Charter Communications, Inc. provided entertainment, information and communications solutions to residential and commercial customers. The company offered cable video programming services, such as basic and digital video, premium channels, OnDemand, pay-per-view, high definition television, digital video recorder, and online video services; Internet services; Charter.net, which provides multiple e-mail addresses, as well as various entertainment, games, news, wireless backhaul, and sports content; and telephone services. It also provided broadband communications solutions, such as Internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment services, and business telephone services under the Charter Business brand name to business and carrier organizations. Charter Communications was founded in 1993 and was headquartered in Stamford, CT.
