Shares of Charter (CHTR) were up nearly 3% at the time of writing after JPMorgan analysts pulled the cable and broadband communications provider off their “negative catalyst watch list.” This was due to better-than-expected customer losses following the end of the Affordable Connectivity Program (ACP), which was a government-sponsored program that helped low-income households have internet access for a discount. The fact a lot of people kept their broadband despite losing the discount proved to be a positive catalyst for Charter.
However, JPMorgan left its Neutral rating in place. While it’s pretty happy about the company’s recent cost-cutting measures and network upgrades, the fact remains that fewer people are on that network today than there were in the past. And it’s entirely possible that more people will cut their internet out or otherwise reduce it thanks to broader economic pressures.
Video Also on Decline
Charter is more than just the internet; after all, it’s also got a video arm. However, Charter lost around 393,000 video subscribers. Whether that’s due to people engaging in cable-cutting or just paring back expenses isn’t immediately clear. However, the effect is ultimately the same: less money coming in. If there aren’t new positive indicators, reports note, the end result is likely to be flat or worsening share prices.
What Is the Target Price for Charter?
Turning to Wall Street, analysts have a Hold consensus rating on CHTR stock based on three Buys, seven Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 6.83% loss in its share price over the past year, the average CHTR price target of $356.36 per share implies 6.2% downside risk.
