Canaccord Genuity analyst Aravinda Galappatthige has maintained their bullish stance on RCI stock, giving a Buy rating on July 8.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Aravinda Galappatthige has given his Buy rating due to a combination of factors that reflect positively on Rogers Communications. The company’s recent quarterly results showed a significant improvement in cable returns and effective cost management, which are seen as net positives. Although the wireless segment experienced a slight decline, this was expected, and there are early signs of market stabilization.
Another factor influencing the Buy rating is the potential monetization of Rogers’ Sports assets, which, although delayed, remains a key catalyst for future value creation. Additionally, the company’s cable segment demonstrated strong performance with notable broadband net additions and EBITDA growth, suggesting sustainability in these returns. Furthermore, the balance sheet is expected to improve, with a leverage ratio projected to decrease, supporting the overall positive outlook. Despite recent stock price increases, the stock’s valuation remains attractive, prompting the maintenance of the Buy rating with an increased target price.
In another report released on July 8, RBC Capital also maintained a Buy rating on the stock with a C$55.00 price target.