Street View: Charter Communications' growth to be pressured by rising competition
** Broadband and cable TV provider Charter Communications CHTR.O beat Wall Street estimates for quarterly profit and reported fewer-than-expected broadband subscriber losses on Friday
** The stock, covered by 26 analysts, has a median PT of $329 - LSEG data
SUBSCRIBER TRENDS IN FOCUS
** Morgan Stanley ("equal-weight", PT: $360) sees company facing underlying pressures from a mature market, growing competition primarily in the broadband segment and an elevated spending cycle in 2024
** Raymond James ("underperform") expects increased competition both in fiber and fixed wireless access (FWA) over the next 12 months
** "Our thesis on Charter remains that broadband subscriber growth is going to remain challenged and its aggressive retention and mobility marketing expenses will impact results, particularly as it tries to retain almost 5 million ACP (Affordable Connectivity Program) subs" - Raymond James
** Oppenheimer ("perform") says subscriber growth to remain weak in the next few quarters; adds fiber and FWA to pressure long-term growth
** Barclays ("underweight", PT: $300) says in a mature market with new competitors, most growth will come with "quality trade-offs" and in that sense what CHTR is doing is the only way to keep some degree of growth going
Reporting by Kanchana Chakravarty in Bengaluru
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