Analysts have cut Charter Communications' Fair Value Estimate from about US$233.88 to about US$184.41, reflecting a reset in modeled price targets. The revision comes as revenue growth assumptions now reflect a revenue decline of about 32.20% compared with a prior decline assumption of about 19.51%, while the net profit margin assumption has shifted from about 9.47% to about 9.05%. The future P/E has moved from about 6.34x to about 5.12x, and the discount rate has adjusted from about 12.46% to about 12.54%. Current Street price targets span a little over US$100 to just under US$400, with firms including Citi, BofA, TD Cowen and Bernstein maintaining Buy or equivalent ratings, while Wells Fargo, Barclays, Goldman Sachs and JPMorgan have lowered targets into a US$101 to US$200 range on broadband pressure and ARPU softness.
Charter Communications IncAnalysts cut fair value estimate and price targets due to weaker revenue and margin assumptions.
