Citing more positive forecasts for broadband and wireless development, Charter Communications (CHTR, Financial) saw its stock climb over 2% Monday after Bank of America rated the firm as "Buy." Based on Charter's most recent quarterly report, which indicated positive future expansion, BofA's upgrade aligns.
The Affordable Connectivity Program (ACP) seems to be having less of an effect on subscriber turnover, Bank of America said. As Charter takes market share, its cellular expansion is still somewhat robust and it is acquiring traction in broadband subscriptions. BofA underlined Charter's new video approach as a possible driver for higher video subscription numbers, which might also help to lower broadband turnover.
BofA projects Charter to lose 400,000 broadband users in 2024, an adjustment over earlier projections of 490,000. The bank projects free cash flow (FCF) of $4.35 billion, EBITDA increase of 3.1%, and 0.8% revenue increase. Supported by less ACP-related turnover, continuous network enhancements, and packaged offers improving consumer value, BofA expects broadband subscriptions to stabilize by 2025.
