Analyst Cuts the Cord on Two Telecom Stocks

Both stocks are trading near two-year lows

Deputy Editor
Aug 15, 2022 at 10:06 AM
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Comcast Corporation (NASDAQ:CMCSA) and Charter Communications Inc (NASDAQ:CHTR) are both lower today following a bear note from Atlantic Equities. The firm downgraded the cable companies' shares to "neutral" from "overweight," and revised their price targets on CMSA and CHTR to $44 and $477, respectively, citing pressure on gross additions and competition from fixed wireless access.

Coming into today, sentiment amongst the brokerage bunch was mixed, but there's plenty of room for additional downgrades and/or price-target cuts for both equities. Specifically, 14 of 23 analysts in coverage rate Comcast stock a "buy" or better, while eight of of 20 brokerages recommend the same for CHTR. Further, CMCSA and Charter sport 12-month consensus price targets of $47.88 and $582.33, which are 19.7% and 21.8% premiums, respectively, to Friday's close. 

Comcast stock was last seen down 0.8% to trade at $39.70. The equity's 80-day moving average has pressured the equity to a series of lower lows, culminating in a July 29, roughly two-year low of $36.57. Year-to-date, CMCSA is down 20.5%.

Charter Communications stock was down 0.4% at $476.05 at last check, and its technical setup is similarly bleak. Recent rally attempts were stymied by the 80-day trendline, though a floor seems to be in place at $420. CHTR is down 38.4% year-over-year/

 

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