TD Cowen analyst Vince Valentini maintained a Buy rating on Rogers Communication on February 6 and set a price target of C$67.00.
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Vince Valentini has given his Buy rating due to a combination of factors tied mainly to Rogers’ undervalued sports assets and supportive market signals. He notes that the sharp appreciation in Madison Square Garden’s equity and the narrowing gap between public trading levels and Forbes’ franchise valuations support the idea that listed sports assets can re-rate closer to private-market benchmarks.
He further argues that Rogers’ stake in MLSE and full ownership of the Blue Jays are being significantly underappreciated in the current share price. Based on his valuation framework, the implied market value of these sports holdings within RCI.B is far below both his own estimate and management’s indication, leading him to conclude that the stock embeds a sizable hidden asset discount and thus merits a Buy recommendation.
In another report released on February 2, J.P. Morgan also maintained a Buy rating on the stock with a C$65.00 price target.
RCI’s price has also changed slightly for the past six months – from C$45.390 to C$49.290, which is a 8.59% increase.