Brennan Asset Management in Q2 Letter: Charter Communications (CHTR) 'Universally Hated' but ~50% FCF Yield Incongruous with Bonds Near Par; CHTR Targets 3.5x Debt Leverage
Brennan Asset Management, in its Q2 2026 investor letter, discussed Charter Communications (CHTR), acknowledging its prior misjudgment on the company. However, the firm noted that CHTR's approximately 50% forward free cash flow yield appears incongruous with its 2030 bonds trading near par. The asset manager expressed continued confidence in CHTR's management team and the Cox acquisition. Charter Communications has stated its intention to reduce debt levels, targeting a post-Cox acquisition leverage ratio of 3.5 times, down from a previous target of around 4 times.
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