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Netflix Streams Its Way Into Video Games: Everything We Know So Far
Netflix Streams Its Way Into Video Games: Everything We Know So Far

Charter Downgraded to Underweight by Wells Fargo

The issue for Charter and others is fundamentals, Wells Fargo said. It's focused on the slowdown of cable subscriber growth.
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Charter Communications  (CHTR) - Get Free Report shares fell Friday, after Wells Fargo downgraded the cable TV giant to underweight from equal weight, lowering its price target to $665 from $848.

The issue is fundamentals, Wells Fargo analyst Steven Cahall wrote in a commentary cited by CNBC. He’s focused on the slowdown of cable subscriber growth. Cable customers are cutting the cord, shifting to streaming video services instead.

“We’re now taking a more bearish stance on the cable sector’s outlook and by default CHTR’s as the industry standard-bearer,” he said.

Charter ended the day off 4.8% at $706.13.

Cahall also lowered his price target for Comcast  (CMCSA) - Get Free Report to $41 from $49, keeping his rating at underweight. Comcast recently traded at $55.25, down 4%, and has fallen 9% in the last month.

The analyst slashed his price target for Altice USA  (ATUS) - Get Free Report to $21 from $34, maintaining his equal weight rating. Altice recently traded at $18.86, down 2%, and has plunged 30% in the last month.

Cahall downgraded Cable One  (CABO) - Get Free Report to equal weight from overweight, trimming his price target to $2,100 from $2,400. The stock recently traded at $1,777, down 3%, and has dropped 11% in the last month.

Getting back to Charter, Morningstar analyst Michael Hodel likes the company.

“Our margin expectations have been a bit too low,” he wrote after its earnings report in July. “With increased pricing and margin assumptions, our fair value estimate increases to $600 per share from $565. Despite the increase, we believe the shares remain modestly overvalued.”