Valued at a market cap of $36.7 billion, Charter Communications, Inc. (CHTR) is a broadband connectivity and cable operator company based in Stamford, Connecticut. It provides subscription-based internet, video, mobile, and voice services under its flagship Spectrum brand. Additionally, it provides a suite of advanced broadband connectivity solutions designed to enhance the wireless internet experience for both residential and commercial customers.

This communication services provider has considerably underperformed the broader market over the past 52 weeks. Shares of CHTR have declined 25.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 15.2%. Moreover, on a YTD basis, the stock is down 21.5%, compared to SPX’s 10.2% uptick.

Narrowing the focus, CHTR’s underperformance looks more pronounced when compared to the iShares U.S. Telecommunications ETF’s (IYZ) 32.5% return over the past 52 weeks and 16.5% rise on a YTD basis. 

Shares of CHTR crashed 18.5% on Jul. 25, after its mixed Q2 earnings release. Growth in its commercial revenue was primarily offset by a fall in its total residential revenue, fueled by lower video and voice sales. This led to a marginal year-over-year increase in its top-line to $13.8 billion, which topped the consensus estimates by a small margin. However, its total internet customers dropped substantially by 117,000, raising investor concerns. Additionally, its net income per share of $9.18 fell short of Wall Street estimates by 8.7%, further dampening investor confidence. 

For the current fiscal year, ending in December, analysts expect CHTR’s EPS to grow 10.2% year over year to $38.52. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in two of the last four quarters, while missing on two other occasions.

Among the 25 analysts covering the stock, the consensus rating is a "Moderate Buy” which is based on 12 “Strong Buy,” nine “Hold,” and four “Strong Sell” ratings. 

This configuration is more bullish than two months ago, with 11 analysts suggesting a "Strong Buy” rating, and three recommending “Strong Sell.”

On Aug. 21, Wells Fargo & Company (WFC) analyst Steven Cahall resumed coverage on CHTR with a “Hold" rating and a price target of $300, implying an 11.5% potential upside from the current levels.

The mean price target of $406.64 represents a 51.1% premium from CHTR’s current price levels, while the Street-high price target of $700 suggests an ambitious upside potential of 160.1%.