Benchmark analyst Matthew Harrigan reiterated Charter Communications Inc (NASDAQ: CHTR) with a Buy and a $575 price target.
The analyst re-rated pending clarity on how the programming dispute and carriage blackout with Disney evolves.
Predictably, it involves Disney and especially ESPN, given Disney's DTC emphasis and subsidization vs. linear, even as it charges Charter ~$12.50 monthly for its overall programming bouquet, perhaps 75% attributable to ESPN.
The current impasse is off the superposition of Disney's streaming-centric DTC approach versus linear with decades-long subsidization of expensive ESPN by subscribers who do not watch sports.
Winfrey suggested on last Friday morning's CC that any agreement with Disney could provide a template for other MVPDs and programmers. However, it is clear near ...