Benchmark analyst Matthew Harrigan reiterated Charter Communications Inc (NASDAQ: CHTR) with a Buy and a $575 price target.
The current stock price level adequately recognizes uncertainty about how the programming dispute and carriage blackout with Walt Disney Co (NYSE: DIS) evolves.
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Tactical moves by Charter and Disney align with CEO Chris Winfrey’s position that this is not the de rigueur perennial negotiating faceoff timed to coincide with the NFL/NCAA football season opening and U.S. Open tennis.
There is evident merit to Winfrey’s adamance that video bundles have been too expensive for many customers, especially non-sports fans, and have not addressed customer needs.
Charter’s claim of having reached “economic indifference” on video appears credible, although, in Benchmark’s assessment, this requires a disciplined runoff of the current installed base while monetizing expended SAC.
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