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An Atlantic Equities analyst downgraded both Comcast (NASDAQ:CMCSA) and Charter (NASDAQ:CHTR) to Neutral.
The analyst outlined the three key reasons why he moved to the sidelines.
Moreover, the analyst took note of “worse than expected broadband results this quarter” from both companies. He sees no clear catalysts in the near term and believes none of the above-mentioned factors will abate in the next 18 months.
“In the absence of robust broadband volumes, we believe valuations will remain pressured and there will be a lack of catalysts to spark investor interest,” he added.
Atlantic analysts add that it is clear both companies are facing greater-than-expected headwinds.
As a result, the analyst cut the price target on Comcast to $44 from $60 and on Charter to $477 from the prior $755.
Shares of CMCSA and CHTR are down 1.5% and 2.5%, respectively, in premarket Monday.
