Canaccord Genuity analyst Aravinda Galappatthige has maintained their bullish stance on RCI stock, giving a Buy rating on January 26.
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Aravinda Galappatthige has given his Buy rating due to a combination of factors that collectively point to a favourable risk‑reward profile for Rogers Communications. The company’s fourth-quarter results surpassed expectations, largely driven by outperformance in the Media segment, with strong contributions from sports assets and new content channels, which in turn supported better-than-expected EBITDA and free cash flow. Management’s 2026 outlook was also incrementally positive versus prior expectations, with service revenue and free cash flow guidance both exceeding the analyst’s forecasts while capex plans were slightly lower, implying healthier cash generation and balance-sheet dynamics over the medium term. Although wireless service revenue was flat and ARPU remained under pressure, the modest improvement versus the prior quarter and stabilization in churn suggest that competitive headwinds may be easing.
At the same time, the Cable segment tracked in line with expectations and continues to provide a stable earnings base, while the Media division has emerged as a meaningful upside driver when sports performance and new channel launches align. Rogers’ leverage, while elevated, appears manageable against the backdrop of improving free cash flow and disciplined capital spending guidance. Against this operational backdrop, Galappatthige’s valuation work, using differentiated EV/EBITDA multiples for wireless, cable, and media, supports a target price that offers sufficient upside from current levels to justify a Buy recommendation. Overall, the combination of a solid quarter, constructive 2026 guidance, improving cash flow visibility, and sum‑of‑the‑parts valuation support underpins the positive stance on the stock.
In another report released on January 26, TD Cowen also maintained a Buy rating on the stock with a C$64.00 price target.