Charter Comm downgraded to Market Perform at Telsey Advisory Group; tgt $340 (392.48)
Telsey Advisory Group downgrades CHTR to Market Perform from Outperform and sets target price at $340. Unlike Superstorm Sandy which dealt a critical blow to the bulk of CVC's NY-area systems, Hurricane Harvey's impact is spread between CHTR, CMCSA/K, and ATUS. CMCSA's Houston systems (sold to CMCSA/K by the former TWC) were perhaps the most impacted but represent just L-MSD percentage of its sub base. CHTR's system in Corpus Christi were likely impacted by power outages, but not flooding. The CHTR systems in Beaumont/Port Arthur recieved nearly 50 inches of rain. But, together, as a percentage of total subscribers, firm ests these systems represent L-MSD ratio of CHTR's total base. Similarly, firm expects ATUS's Suddenlink impacted systems, such as those in Kingwood, TX were impacted by flooding but represent L-MSD of ATUS' overall sub base.