Loop Capital Upgrades Charter Communications (CHTR) Stock to Buy, Lifts PT

On May 19, Loop Capital Markets upped the rating on Charter Communications, Inc. (NASDAQ:CHTR)’s stock from “Hold” to “Buy,” raising the PT to $510 from the previous target of $430. The upgrade comes off the back of positive expectations for the company’s growth after its proposed merger with Cox Communications.

As per the firm, the deal is expected to be anticipated to be beneficial, providing accretive value to Charter Communications, Inc. (NASDAQ:CHTR). It can also help reduce leverage and provide scale efficiencies, which can develop the company as the pre-eminent cable operator in the US.

A close up of a satellite in space, showing the advanced technology of communications systems.

The firm’s analyst, Alan Gould, also noted the promising early results of Charter Communications, Inc. (NASDAQ:CHTR)’s “Life Unlimited” rebrand. The analyst opines that the initiative provides a combined broadband and mobile service and also consists of customer service guarantees. The new video strategy offers customers access to an ad-supported tier of several streaming apps. This is given at no additional cost and can help offset the loss of video subscribers, says the analyst.

Overall, the proposed merger can create a more formidable entity in the broader telecommunications industry with the help of combining Charter Communications, Inc. (NASDAQ:CHTR)’s and Cox’s resources.

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Disclosure: None.