Bernstein SocGen Group has reduced its target for Charter Communications (NASDAQ:CHTR) to $220.00 from $240.00 and kept a Market Perform rating on the shares, the firm said in a research note. The stock was trading at $182.99, close to its 52-week low of $182.54, reflecting a roughly 50% decline over the trailing 12 months.
Analyst Laurent Yoon told clients the adjustment reflects expectations of "more uncertainties ahead" for the company. InvestingPro metrics show Charter currently trades at a price-to-earnings ratio of 5.12, a level Bernstein’s note indicates could signal attractive valuation relative to the company’s reported earnings.
Bernstein’s commentary emphasizes a competitive environment that the research team expects to remain intense through 2026. The firm describes the market as saturated and in the process of shifting toward a "new oligopolistic equilibrium with new variables being introduced along the way." In this context, Bernstein focused on Charter’s recent pricing choices.
Specifically, the research note drew attention to Charter’s decision to retain its structure of introductory and rack-rate pricing while increasing both sets of rates. That approach diverges from the path taken by Comcast, which has rolled out more aggressive value packages in recent actions. Bernstein suggested Charter’s pricing stance could be "arguably constructive for the industry," since widespread discounting across competitors would intensify margin and subscriber pressure for all operators. Nonetheless, the firm signaled concern about Charter’s competitive positioning in the nearer term as rivals pursue different pricing strategies.
On the financing front, Charter disclosed the closing of $3 billion in senior unsecured notes issued by its subsidiaries CCO Holdings, LLC and CCO Holdings Capital Corp. The deal comprises $1.75 billion of Senior Notes maturing in 2033 carrying a 7.0% coupon and $1.25 billion of Senior Notes maturing in 2036 with a 7.375% coupon. Charter said the proceeds are earmarked for debt refinancing, including redemption of outstanding Senior Notes, and potentially for stock repurchases.
Other broker activity and industry moves noted in recent market commentary included KeyBanc’s decision to reaffirm a Sector Weight rating on Charter, citing a more competitive broadband backdrop in 2026. Separately, BNP Paribas Exane revised its price target on Comcast to $28 while maintaining a Neutral view, calling out competitive pricing pressures across the cable sector. Comcast has been discounting services at times such as during the Winter Olympics window, while other providers including Charter and Optimum have taken different approaches to pricing.
Product-level changes within Charter’s footprint were also highlighted: Spectrum, a business unit of Charter Communications, has introduced WiFi 7 Extenders for $5 per month, a move aimed at improving in-home and small-business WiFi coverage.
Taken together, the analyst adjustments, the debt issuance and product updates underscore an industry in flux as operators balance pricing, customer acquisition and balance-sheet management amid elevated competition. Bernstein’s lowered target and cautious tone reflect those dynamics while other market participants continue to weigh the trade-offs between short-term competitiveness and longer-term margin and leverage objectives.