Unlocking Value: Rogers Communication’s Strategic Sports Asset Monetization

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$47.00.

Aravinda Galappatthige has given his Buy rating due to a combination of factors surrounding Rogers Communication’s potential to unlock significant value from its sports assets. The analyst notes that the current market price of Rogers’ shares does not adequately reflect the company’s efforts to capitalize on its sports holdings, which include stakes in major sports franchises and related properties.
Galappatthige highlights the potential for a minority sale of Rogers’ sports assets, which could realize substantial value given the historical appreciation of such assets. The unique attributes of these holdings, including their scarcity and emotional value, contribute to their attractiveness. Additionally, management’s clear commitment to monetizing these assets further supports the potential for a positive market response, leading to an increased target price for the stock.

In another report released on June 6, National Bank also maintained a Buy rating on the stock with a C$52.00 price target.

Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RCI in relation to earlier this year.