D.C. Memo: Key Banc Analyst – ‘There Are Reasons to Believe Cable is Permanently Impaired’
Analyst Brandon Nispel Says Cable Broadband’s Position Will Continue to Erode as a Result of Fiber and Fixed Wireless Access Competition Nationally
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Wall Street: KeyBanc Capital Markets analyst Brandon Nispel said in a report late Tuesday that he expects cable broadband ISPs “to lose more broadband subs in the next three years than they did in the previous three years, and we’re concerned that our estimates, let alone consensus’, are not negative enough.” In so many words, Nispel urged investors to sell cable stocks if they start to rise in price. Charter shares, which hit one-year and five-year lows yesterday, are down 39% in 2025. “This does not appear to be cyclical; there appears to be secular headwinds that worsen when looking into 2026 and beyond,” Nispel said. “We believe that cable stocks, while inexpensive and heavily shorted, should be faded on bounces, and we increasingly view AT&T as an outperform.” Comcast lost 104,000 and Charter lost 109,000 broadband subs in the third quarter, a big factor behind Nispel’s pessimistic outlook. (More after paywall.)
