Charter Downgraded by Wolfe Research as Broadband Losses Deepen

Charter Communications is facing mounting pressure from Wall Street as subscriber churn across its Spectrum internet business accelerates. After shedding more than 400,000 broadband customers in 2025, the cable provider lost an additional 120,000 subscribers in the first quarter of this year and 172,000 in the second quarter. The sustained contraction prompted Wolfe Research to downgrade Charter's stock from Neutral to Underperform, as reported by Yahoo Finance (https://finance.yahoo.com/technology/articles/spectrum-hits-snag-works-curb-173300356.html).

Wolfe Research analyst Peter Supino established a $118 price target on Charter shares, representing a 19% discount to its Sept. 11 closing price. In an analyst note, Supino noted that legacy wireline providers face structural pressure as digital subscriber line (DSL) services decline and satellite alternatives expand. SpaceX's Starlink service, which debuted in 2020 and now counts more than 12 million global high-speed internet customers according to disclosures on X, is adding network capacity through next-generation V3 satellites designed for lower latency and faster throughput. Supino noted that each Starlink launch delivers roughly 22 times more downlink capacity, creating room for eventual retail price reductions against traditional broadband.

Charter's subscriber losses have coincided with price adjustments, including a $10 monthly rate increase across multiple tiers in July. On an earnings call that month, Chief Executive Officer Chris Winfrey acknowledged that competitive intensity remains elevated across the company's footprint. The operator faces simultaneous pressure from fiber expansion, fixed-wireless offerings, mobile broadband, lower sales among low-income households, and rival promotions.

Compared with competitor Comcast, Charter carries greater structural exposure, according to Wolfe Research. The firm forecasts Charter will generate 1.34 million fewer broadband net additions than previously expected, citing its heavier legacy footprint in rural regions, higher volume of customers on sub-gigabit tiers, and exposure to promotional roll-offs.

Wolfe Research also expressed caution regarding Charter's $34.5 billion acquisition of Cox Communications, which closed in August. Supino indicated that Charter inherited a degrading subscriber base subject to steeper competitive intensity than projected, estimating that the company must generate $1 billion in cost savings by 2027 to support EBITDA goals. By comparison, Wolfe Research maintained its Peer Perform rating on Comcast while trimming its 2027 connectivity and platform revenue forecast from $78.29 billion to $77.95 billion.

Executives at both major cable operators maintain that direct satellite impact has been muted so far. Charter Chief Financial Officer Jessica Fisher told investors in July that the company has not observed meaningful share loss to Starlink, including in subsidized rural markets. Comcast Chief Financial Officer Jason Armstrong struck a similar note at the Goldman Sachs Communacopia + Technology Conference on Sept. 9, acknowledging satellite as an emerging long-term rural competitor while stating that current material impacts remain limited.