Charter Communications Inc. shares surged as high as $1.75 each (up 30 cents,
or 21 percent) in early trading Friday after Stifel, Nicolaus & Co. Inc.
cable analyst Ted Henderson upgraded the MSO to "buy" from "market perform" and
set a $4 price target on the stock.
In a research note, Henderson wrote that Charter's recent filing of its 10-K
annual report -- an extensive audit done for the years 2000, 2001 and 2002 --
coupled with his belief that a federal grand jury will find no material
wrongdoing at the MSO make the stock a good investment.
Henderson also believes Charter chairman Paul Allen will lead a restructuring
of its debt.
"'Market perform' is the wrong rating on this stock because Charter shares
are definitely going to do something after the smoke clears," Henderson
Charter stock closed Friday at $1.67 each, up 22 cents (15.17 percent).