Quebecor: Sustained Telecom Strength and Subscriber Growth Justify Maintaining Buy Rating Despite Rich Valuation

Quebecor, 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$58.00 price target.

Vince Valentini has given his Buy rating due to a combination of factors that point to continued fundamental strength at Quebecor despite recent multiple expansion. He expects the company to post healthy fourth-quarter performance on key measures, particularly telecom service revenue and EBITDA, with core telecom profit projected to grow year-over-year. While some segment-level adjustments are made, overall EBITDA expectations remain intact, and he emphasizes that non-recurring items such as higher stock-based compensation could distort headline figures without changing the positive underlying trend.
At the wireless level, Valentini still anticipates Quebecor to lead the industry in net subscriber additions in a seasonally strong quarter, even after trimming his forecast to reflect intense year-end promotions by incumbents. The company’s ability to add customers in an environment of minimal population growth, while also turning mobile ARPU back to year-over-year growth, underpins his confidence in both volume and pricing momentum. He acknowledges that the stock’s strong performance and sector-high valuation multiple may limit near-term upside versus the prior year, but he views the operational trajectory and telecom-focused earnings power as sufficient to justify maintaining a Buy recommendation.