In a report released today, Aravinda Galappatthige from Canaccord Genuity maintained a Buy rating on Rogers Communication (RCI – Research Report), with a price target of C$41.00.
Aravinda Galappatthige has given his Buy rating due to a combination of factors that reflect Rogers Communication’s financial performance and strategic initiatives. Despite a decline in wireless volumes, the company managed to maintain a steady growth in wireless service revenue, which increased by 1.5%. This stability in revenue, coupled with a decrease in churn rates, indicates a positive trajectory for the wireless segment.
Additionally, Rogers’ efforts to deleverage following a significant equity investment have resulted in a reduced leverage ratio, showcasing the company’s commitment to strengthening its financial position. The media segment also showed robust growth, with a notable increase in revenues driven by sports-related activities and new channel launches. These elements, alongside the company’s maintained guidance for the fiscal year, underpin the positive outlook and justify the Buy rating.
Galappatthige covers the Communication Services sector, focusing on stocks such as Telus, Rogers Communication, and BCE. According to TipRanks, Galappatthige has an average return of -1.5% and a 46.03% success rate on recommended stocks.
In another report released on April 9, RBC Capital also maintained a Buy rating on the stock with a C$54.00 price target.