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Charter Communications: Economic Moat Will Soon Propel The Stock Price
Summary
- I believe Charter Communications is a deeply undervalued stock which has been recently penalized by the market for the threats of technological competition.
- According to my analysis, Charter has an unmatched economic moat in terms of technological solution and pricing power, which result in high customer stickiness.
- Recent results highlight growing revenues, subscriber retentions, and high costs for new entrants which make CHTR the perfect play in an inflationary and rising interest rate environment.
- I assign a Strong Buy on CHTR stock with an intrinsic value between $720 and $975 (implying 92.5% to 161% potential upside).
I have several years of experience in the financial industry both buy and sell side, with focus mainly in US, EU and UK. I am leading an investment fund and advisory boutique that publishes investment research, produces portfolio allocation and quantitative models as well as offers courses on investment management and quantitative finance. In the stock selection process, we adopt a global top-down, long-term value and contrarian type of approach. Leveraging on proprietary models we construct build portfolio that are tailored to our clients. We also provide trainings focused on investment management, portfolio allocation and quantitative finance.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of CHTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I have no business relationship with any company whose stock is mentioned in this article. DGP Capital Management does it best to reduce human mistakes as much as it is possible. Still, as they cannot be completely ruled out, cannot be considered responsible for any inaccuracy in the research. Please note that the forecasts do not guarantee any future performance. DGP Capital Management is not responsible for any loss as the author does not provide any financial advice and does not force readers to act towards any securities.
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