Rogers Communication, the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Vince Valentini from TD Cowen maintained a Buy rating on the stock and has a C$64.00 price target.
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Vince Valentini has given his Buy rating due to a combination of factors that suggest potential for Rogers Communications’ stock to appreciate. One of the primary reasons is Rogers’ significant exposure to the wireless sector, which is expected to benefit from an improving pricing environment. This positions Rogers favorably compared to its peers, as it continues to lead in service revenue growth and mobile additions. The stability in wireless pricing trends, especially as the industry moves through the final phase of repricing, could further enhance Rogers’ market position.
Another factor contributing to the Buy rating is the potential for monetization of Rogers’ sports assets. With a substantial ownership in MLSE and full ownership of the Blue Jays, these assets are valued significantly and could be further leveraged through strategic transactions and spin-offs. Additionally, a decline in capital expenditures is anticipated to increase free cash flow, aiding in debt repayment. These elements collectively present a strong case for the stock’s potential upside, justifying the Buy recommendation.