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Charter Communications (CHTR) - Get Free Report  rose 3% Friday following an upgrade from KeyBanc Capital Markets to overweight from sector weight.

Analyst Brandon Nispel also set a $515 price target for the stock, which implies a 20% increase from Friday's levels around $429.

"CHTR remains well-positioned to benefit from increased penetration rates in Broadband, higher Download Speed Take Rates to drive Broadband ARPU higher, and an overall mix shift to higher-margin "Growth Business,'" Nispel said in a note. He said competition from fiber-to-the-home providers and potential 5G home launch "is unlikely to limit CHTR's opportunity in the next 2-3 years."

The analyst also noted that the company should benefit from a price increase being passed on to customers in October. KeyBanc also expects the company to use its "significant" free cash flow to repurchase shares "and ultimately drive higher FCFps."

The stock has 20 buys, 11 holds and two sells with an average price target of $434, according to Bloomberg.

Charter Communications shares were trading up about 3% to $429.11 on Friday. The stock has risen about 50% so far this year.