Charter Communications, Inc. (CHTR)

Under the bull case, next-generation network upgrades and subsidized rural buildouts drive broadband subscriber net additions decisively back into positive territory. Converged mobile bundling with Spectrum One achieves high penetration, driving mobile service revenue growth rapidly and lowering household churn. Capital expenditures normalize rapidly following peak upgrade cycles, expanding unencumbered free cash flow. Unencumbered cash flow is deployed toward aggressive debt retirement, accelerating equity value creation and driving valuation multiple expansion toward the high-end Potential value.

• Residential broadband net adds accelerate as next-generation DOCSIS network architecture delivers symmetrical multi-gigabit speeds.
• Mobile service revenue expands rapidly annually via Spectrum One bundling stickiness.
• Capital expenditures normalize rapidly as a share of revenue following peak upgrade cycles, boosting free cash flow generation.
• Valuation multiples re-rate toward peer cable historical averages.