BofA reiterated a Buy rating and $450 price target on Charter (CHTR) after the company agreed to acquire Liberty Broadband (LBRDK) (LBRDA) in an all-stock transaction. The firm views the 0.236 exchange ratio as favorable to Charter given the implied discount, adding that it will enable the company to effectively repurchase Liberty’s 45.6M Charter shares. With affordable connectivity program headwinds largely behind Charter, broadband sub trends will likely continue to improve and wireless growth remains strong, the analyst tells investors in a research note, adding that Charter would have ample capacity for buybacks following the shareholder vote.
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Read More on CHTR:
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- Charter Communications Announces Merger with Liberty Broadband
- Charter to acquire Liberty Broadband in all-stock transaction
- Liberty Broadband CEO Greg Maffei to step down at year end
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