Charter Communications is a buy at $144 as the market is severely undervaluing an imminent free cash flow inflection. The company is exiting a heavy capex cycle, with management guiding capital expenditures down from ~$11.7B in 2025 to ~$8B, which should unlock $8–9B in annual free cash flow by 2027–2028. Despite a 35% share price decline, the stock trades at just 3.7x earnings and 5.6x EV/EBITDA, a deep discount to peers, while recent insider buying by the CEO and other executives signals conviction in the turnaround.
Capex Reduction Execution
If the projected decline in capital expenditures to ~$8B is delayed or fails to materialize, the free cash flow inflection will be pushed out, undermining the core investment thesis.
Leverage and Refinancing Risk
Total debt stands at $97.1B against just $16.1B in equity, and refinancing maturities at higher rates could pressure interest coverage and limit capital returns.
Subscriber Erosion
Persistent cord-cutting and competition from fiber and fixed-wireless providers could accelerate broadband subscriber losses, eroding the high-margin subscription revenue base.
Liberty Broadband Overhang
A significant disposition of 1.26M shares by Liberty Broadband at $204 in May 2026 indicates a major holder reducing its stake, which could create technical selling pressure.