Company description charter provides cable television

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COMPANY DESCRIPTION Charter provides cable television, high-speed internet, and digital telephone services to communities across the United States. In May 2016, Charter acquired Time Warner Cable and Bright House Networks. Charter is the third-largest multichannel video program distributor in the U.S. John Malone’s Liberty Broadband and Advance/Newhouse, the former owner of Bright House, together own a controlling minority interest in Charter. VALUATION CHTR shares are down 15% in the last year, compared to a 16% increase for the S&P 500 and a 7% decline in the S&P 500 Media Index. Charter’s trailing enterprise value/EBITDA multiple of 10.1 is above the peer group average of 9.7 and above peer Comcast’s multiple of 7.5. However, these comparisons may be of limited value given the transformative nature of the TWC/ BH mergers. The forward enterprise value/EBITDA multiple of 9.1 is 7% above the peer average, close to the average premium over the past two years. We are maintaining our BUY rating on Charter but lowering our target price to $400. On May 14, BUY-rated CHTR closed at $272.84, up $0.03. (Joseph Bonner, CFA, 5/14/18)
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M ARKET D IGEST - 17 - Argus Research Co. (ARC) is an independent investment research provider whose parent company, Argus Investors’ Counsel, Inc. (AIC), is registered with the U.S. Securities and Exchange Commission. Argus Investors’ Counsel is a subsidiary of The Argus Research Group, Inc. Neither The Argus Research Group nor any affiliate is a member of the FINRA or the SIPC. Argus Research is not a registered broker dealer and does not have investment banking operations. The Argus trademark, service mark and logo are the intellectual property of The Argus Research Group, Inc. The information contained in this research report is produced and copyrighted by Argus Research Co., and any unauthorized use, duplication, redistribution or disclosure is prohibited by law and can result in prosecution. The content of this report may be derived from Argus research reports, notes, or analyses. The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but Argus makes no representation as to their timeliness, accuracy or completeness or for their fitness for any particular purpose. In addition, this content is not prepared subject to Canadian disclosure requirements. This report is not an offer to sell or a solicitation of an offer to buy any security. The information and material presented in this report are for general information only and do not specifically address individual investment objectives, financial situations or the particular needs of any specific person who may receive this report. Investing in any security or investment strategies discussed may not be suitable for you and it is recommended that you consult an independent investment advisor. Nothing in this report constitutes individual investment, legal or tax advice. Argus may issue or may have issued other reports that are inconsistent with or may reach
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