TD Cowen raised its price target on Charter Communications (NASDAQ:CHTR) to $437.00 from $428.00 on Monday, while holding its rating on the cable operator's shares. The new target implies substantial upside from Charter's most recently quoted share price of $214.24, a level reached as the stock has declined by more than 40% over the past year.
The analyst move followed Charter's fourth-quarter 2025 results, which TD Cowen characterized as "mixed." The company reported better-than-expected broadband subscriber losses for the quarter and recorded a net gain in video subscribers, outcomes that the firm flagged as evidence of improving customer trends.
Documented financials show Charter generated $22.06 billion in EBITDA over the last twelve months, according to InvestingPro data cited in the analysis, underlining the company’s scale within the media industry. On the company’s earnings call, management reiterated expectations for EBITDA growth in 2026, signaled an outlook for improved cash taxes in 2026, and described a more favorable long-term capital expenditure cycle.
TD Cowen highlighted the improved capital expenditure outlook as a contributing factor to the recent uptick in Charter's share price. The firm also wrote that broadband and video subscriber trends revealed "discernible progress," language that supported the boost to the price target without changing the underlying rating.
The broker added a sector-level observation suggesting that cable stocks overall should recover from what it called "unwarranted DSL-like levels," implying the industry may be priced lower than fundamentals warrant. Complementary metrics from InvestingPro cited in the coverage show Charter trading at a price-to-earnings ratio of 5.74 and delivering a free cash flow yield of 15%, with InvestingPro analysis indicating the company is currently undervalued and additional ProTips available in a Pro Research Report.
Charter's reported fourth-quarter 2025 earnings exceeded analyst expectations on a per-share basis, with EPS of $10.34 versus the anticipated $9.86. Revenue for the quarter totaled $13.6 billion, falling short of the forecasted $13.74 billion. The earnings release was followed by an increase in the stock during pre-market trading, reflecting investor interest in the results and commentary.
Analyst reactions beyond TD Cowen were mixed. Benchmark boosted its price target to $455 from $425 and maintained a Buy rating, a change Benchmark said reflected the impact of the Cox Communications acquisition and the Liberty ownership roll-in. By contrast, Wells Fargo raised its price target to $200 from $180 while keeping an Underweight rating. These divergent moves highlight differing interpretations among brokers about Charter's near-term outlook and the longer-term implications of recent transactions.
Overall, the combination of management guidance for 2026, subscriber trends that include improved broadband losses and video gains, and a more favorable capex outlook informed TD Cowen's decision to lift its price objective while leaving its recommendation unchanged. Other analysts have adjusted their targets in both directions, resulting in varied sentiment across the brokerage community.
Key context and data points:
- TD Cowen price target: raised to $437.00 from $428.00 (rating unchanged).
- Current share price cited: $214.24; stock down more than 40% over the past year.
- Trailing twelve-month EBITDA: $22.06 billion (InvestingPro data).
- Q4 2025 EPS: $10.34 vs expected $9.86; Q4 revenue: $13.6 billion vs expected $13.74 billion.