Wolfe Research Upgrades Charter Communications (CHTR) on Potential Tax Benefit

Charter Communications, Inc. (NASDAQ:CHTR) is one of the 11 best performing Warren Buffett stocks in 2025. On June 20, Wolfe Research raised the company’s stock from an “Underperform” rating to a “Peer Perform” rating. According to the analysts, the key reason for the upgrade is the potential financial benefits for Charter from the anticipated reinstatement of 100% bonus depreciation.

Wolfe Research Upgrades Charter Communications (CHTR) on Potential Tax Benefit

A broadband satellite hovering in the sky, highlighting the company’s satellite-based broadband communication solutions.

In 2017, the Tax Cuts and Jobs Act introduced 100% bonus depreciation. This move allowed companies to deduct the full cost of certain capital expenditures immediately. But this provision began phasing out in 2023. In 2025, the House passed the “One Big Beautiful Bill”, aiming to reinstate full bonus depreciation through 2029 (2030 for some assets). The bill seeks to stimulate capital investment and reduce near-term tax burdens for infrastructure-heavy firms like Charter.

Charter stands out as a prime beneficiary with its $93.6 billion debt load and capital-intensive broadband infrastructure. Wolfe Research’s analysts highlighted that the company could see $1.8 billion in tax savings in 2025 alone. This is a 30% free cash flow (FCF) boost, potentially doubling FCF per share by 2027.

Charter Communications, Inc. (NASDAQ:CHTR) is a broadband connectivity and cable operator company. It provides internet, video, voice, and mobile services to over 32 million customers across 41 US states. Its leading brand is Spectrum, which offers high-speed internet, cable TV, home phone, and mobile services to both residential and business clients.

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Disclosure: None.