Benchmark on Monday raised its 12-month price target on Charter Communications (NASDAQ:CHTR) to $455.00, up from $425.00, while leaving its Buy rating intact. The new target implies meaningful upside from Charter’s most recent share price of $213.97, a level that, according to InvestingPro data cited in Benchmark’s note, reflects a 40.34% decline over the past 12 months.
The analyst firm attributes the $30 lift in target to the strategic effects of the Cox Communications acquisition and the Liberty ownership roll-in. A central element of Benchmark’s valuation is a single OIBDA (EBITDA) multiple applied on a pro forma basis for the Cox transaction, an approach the firm says accounts for roughly $165 of the target share price.
Benchmark’s research summary also references recent commentary from Charter CEO Chris Winfrey, who suggested the company is likely to deliver nominal positive EBITDA growth this year before accounting for transaction-related costs. Charter’s current EBITDA run-rate stands at $22.06 billion, and Benchmark notes an enterprise value to EBITDA multiple of 5.85 based on that figure.
On capital spending, Benchmark forecasts elevated investment during the network upgrade cycle, expecting 2026 capital expenditures of $11.4 billion. The firm projects that normalized, steady-state CapEx will fall to below $8 billion annually by 2028, which would equate to roughly 13-14% capital intensity relative to revenue at that time.
Those capex assumptions feed directly into Benchmark’s free cash flow outlook. The firm estimates a mid-teen free cash flow yield for Charter even in the current year, rising to a mid-twenties yield in 2027 and potentially higher in 2028. InvestingPro data referenced in Benchmark’s analysis shows Charter’s current free cash flow yield at 15% and notes that management has been an aggressive buyer of shares.
InvestingPro’s Fair Value analysis, as cited in the research, indicates Charter appears undervalued at current market levels, with additional details available in the platform’s comprehensive company report.
Recent reported results provide context for the analyst moves. In fourth-quarter 2025 results, Charter posted earnings per share of $10.34, beating the $9.86 consensus expectation, while revenue of $13.6 billion fell short of the $13.74 billion forecast. Benchmark and other analysts appear to be weighing the EPS outperformance against the revenue miss when calibrating forward expectations.
In related analyst activity, Wells Fargo raised its price target on Charter from $180 to $200 but maintained an Underweight rating. Wells Fargo characterized Charter’s valuation as "undemanding," noting approximately 5x on both calendar-year 2026 EV/EBITDA and P/FCF metrics.
Taken together, the analyst commentary centers on the interaction of transaction effects, current EBITDA generation, near-term capital intensity and the trajectory toward lower steady-state capex that supports stronger free cash flow yields. These elements appear to underpin Benchmark’s higher target and Wells Fargo’s adjusted, yet cautious, outlook.