Charter: Cheaper Than In March 2020 After Q1 Results
(Preview) Company Update (CHTR US)
Summary
Charter stock lost 16% last week as U.S. Cable firms reported Q1 2022 results; its market capitalization is now lower than in March 2020.
Q1 EBITDA grew 5.4% year-on-year, and Free Cash Flow / Share grew 29.4%, but sequential Internet customer growth was only 0.6%.
Management attributed the deceleration to macro factors such as lower move churn, which should normalize over time, not competition.
This view is supported by record low churn, Charter's local market observations, as well as results reported by competitors.
At $428.49, Charter can more than triple by 2025 year-end on reduced P&L forecasts, as buybacks are now done at lower prices. Buy.
Introduction
Charter shares lost 7.2% on Friday (April 29) after Q1 2022 results, ending down 16.2% in a week where peers Comcast and Altice USA also released earnings.
CHTR stock has now nearly halved since peaking above $825 last September, and has lost 16% since we initiated our Buy rating in January 2020.
While Charter's share price is st…