Quebecor: Solid Execution and Cash Generation Largely Priced In, Justifying a Hold Rating

Canaccord Genuity analyst Aravinda Galappatthige maintained a Hold rating on Quebecor today and set a price target of C$51.25.

Aravinda Galappatthige has given his Hold rating due to a combination of factors, balancing Quebecor’s strong execution with valuation considerations. The company delivered better‑than‑expected Q4 results, driven by Telecom outperformance, disciplined cost control, and a one‑time retroactive boost in Media, while wireless subscriber gains and modest internet growth supported solid EBITDA and EPS upside.

At the same time, a material part of the earnings beat stemmed from non‑recurring Media adjustments, and wireline trends, though improved, remain mature. Even with robust free cash flow, a healthier balance sheet at under 3.0x net debt/EBITDA, and a 14% dividend increase, the shares already reflect much of this progress under the firm’s 2026 EV/EBITDA framework, leaving limited near‑term multiple expansion, which underpins the Hold stance.