Charter Communications' (CHTR) Q3 results should show steeper broadband subscriber losses even as financial metrics improve modestly, as rate actions in broadband and higher political ad spending help offset persistent competitive pressure from fiber and convergence, UBS Securities said in a note Monday.

The investment firm said its estimates exclude Cox, following the transaction's Aug. 20 closing, and will be updated once trending schedules are provided in mid-October. It attributed the expected pickup in broadband losses to fiber and convergence competition, with satellite also set to grow as Starlink expands its V3 constellation.

UBS said video should continue to outperform in the market, mobile net adds should slow year-over-year, and residential revenue trends should improve as July pricing actions take hold.

For 2027, UBS expects Cox to see accelerating declines while legacy Charter trends remain similar, with over $1 billion of cost synergies expected within three years of close.

UBS has a neutral rating on the stock with a price target of $140.

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