Benchmark has reiterated a Buy rating on Charter Communications stock and maintained a $425.00 price target as investors await the company’s fourth-quarter 2025 earnings report scheduled for tomorrow. The target sits well above the current market price of $188.63, which is only slightly higher than the 52-week low of $182.04.
Market data indicate Charter is trading below its assessed fair value and carries a price-to-earnings ratio of 5.14. Benchmark’s valuation work attributes a large portion of its upside case to the company’s acquisition of Cox Communications and the associated integration of Liberty ownership stakes. The analyst firm notes that the post-acquisition value implied by a single OIBDA - EBITDA - multiple could account for roughly $165 of the share price.
Charter’s trailing-12-month EBITDA is reported as $22.09 billion. Benchmark frames its bullish stance against visible skepticism in the market over Charter’s ability to stabilize intermediate OIBDA generation and broadband activity. The firm argues that the current share price discounts a degree of deterioration that may be more severe than warranted, particularly given expectations for a substantial reduction in capital expenditures after 2027 when a major network upgrade program is expected to conclude.
Over the past year the stock has tumbled 49.12%, yet the company remains profitable on an earnings-per-share basis, with a diluted EPS of $36.1. Benchmark expects Charter to hold relatively steady broadband market share over the medium term through a combination of bundled broadband-mobile offerings and continued network evolution that delivers multi-gigabit speeds.
One element Benchmark highlights is shareholder return activity: Charter has been an aggressive repurchaser of its stock. The firm also points to Charter’s strong free cash flow yield of 16% as a source of financial flexibility that market participants are likely to scrutinize during the upcoming earnings call.
The earnings conversation may also shed light on steady-state broadband pricing power. Benchmark emphasizes that the ability to generate predictable OIBDA while maintaining low single-digit long-term broadband pricing is a key metric for the health of U.S. broadband providers and one that investors will likely press management on during the call.
Separately, Charter has closed a $3.0 billion offering of senior unsecured notes through two subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp. The issuance comprises $1.75 billion of Senior Notes due 2033 carrying a 7.0% coupon and $1.25 billion of Senior Notes due 2036 with a 7.375% coupon.
Broker reactions ahead of the results have been mixed. Bernstein SocGen Group reduced its price target for Charter to $220 from $240 while retaining a Market Perform rating, signaling tempered expectations. KeyBanc reiterated a Sector Weight rating and expressed caution about a potentially difficult broadband competitive environment in 2026.
On the product side, Charter’s consumer-facing brand has introduced WiFi 7 Extenders priced at $5 per month to improve in-home or small-business wireless coverage using the newer WiFi standard. In related industry developments, one major cable operator had its price target cut by another broker citing intensifying competition and aggressive promotional pricing during prominent events, while Charter has reportedly raised TV prices without implementing some expected broadband price increases. These items reflect ongoing strategic adjustments and competitive dynamics across the telecommunications and cable sectors.
Investors heading into the earnings release will likely focus on several questions: the company’s ability to stabilize OIBDA and broadband subscriber trends, the near-term and medium-term cadence of capital spending, the interplay of pricing and promotional activity with competitors, and how recent debt issuance and share repurchases affect balance sheet flexibility and returns to shareholders.
Contextual note: The outlook and analyst stances described here are current as of the most recent analyst reports and corporate disclosures referenced in this piece. Market participants will be watching tomorrow’s earnings call for additional clarity on execution and financial outlook.