Charter Communications a new short idea at Hedgeye
coffeekai/iStock via Getty Images


Charter Communications (NASDAQ:CHTR) was added as a short idea at Hedgeye as the firm believes a deterioration in fundamentals for the cable company "is only getting started" and sees potential for 20%-30% downside for the shares. Charter ticked down 0.7%

"Threats from FWA and Fiber have forced CHTR into another capital cycle that is unlikely to improve its strategic positioning long-term," Hedgeye analyst Andrew Freedman wrote in a note on Thursday. "We believe CHTR will struggle to grow internet broadband subscribers with a rising probability of sub losses over the next 3 years as Fiber penetration increases."
Hedgeye expects Charter (CHTR) operating income and EBITDA to declined on YoY basis as soon as 1H23.
Charter (CHTR) shares slumped 16% last Wednesday after the company outlined heavy spending ahead on nationwide network upgrades at an investor day. Charter's stock has dropped over 50% this year.
Charter (CHTR) short interest is 8.4%.