Investors ought to count on slower development forward for cable corporations Comcast and Charter Communications , in keeping with Barclays. Analyst Kannan Venkateshwar downgraded shares of Comcast to equal weight, and shares of Spectrum mother or father firm Charter to underweight, pointing to dwindling subscriber numbers. “With full year broadband sub growth at Comcast and Charter now expected at ~300k and ~200k respectively this year (vs our pre-Covid forecast of 1.2-1.4mm each), the growing debate is likely to be about the likelihood of potentially negative broadband sub growth next year and beyond given that the macro backdrop and competitive environment looks likely to worsen,” Venkateshwar wrote. Comcast, regardless of its scale, is uncovered to the general slowdown within the cable broadband trade, and has largely did not construct up its streaming enterprise by way of Xfinity Flex and Peacock, the be aware learn. The analyst additionally fears that Comcast’s acquisition of British telecommunications Sky was at a premium value. “In our opinion, Comcast has struggled to morph from an oligopolistic mindset when entering new and highly competitive markets for the most part, and with competition now coming into broadband, the company, along with the rest of the industry, appears to have been caught flat footed,” Venkateshwar wrote. The analyst trimmed the value goal to $42, down from $48, implying about 12% upside from Friday’s closing value. Shares of Comcast dipped 0.6% in Monday premarket buying and selling. Meanwhile, Charter might discover it troublesome to spend on buybacks ought to it proceed to fail to ship development. “The company’s large scale buyback program provides meaningful valuation support for now from a valuation perspective, but may not be enough to offset further industry weakness in broadband and weak subscriber trends,” the be aware learn. Barclays lowered Charter’s value goal to $388, down from $436, representing about 10% draw back from Friday’s closing value of $432.10. Shares of Charter fell greater than 1% in Monday premarket buying and selling. “Overall, these factors imply that the largest cable companies, Comcast and Charter, are likely past peak growth and the debate therefore boils down to the degree of downside to broadband net adds going forward,” Venkateshwar wrote. “Based on our framework above, cable providers could be at flat growth next year and potentially negative thereafter unless their pace of footprint expansion and marginal penetration of this expanded base accelerates,” the analyst added. —CNBC’s Michael Bloom contributed to this report. Disclosure: Comcast is the proprietor of NBCUniversal, mother or father firm of CNBC.