Quebecor downgraded to Sector Perform from Outperform at Scotiabank

Scotiabank analyst Maher Yaghi downgraded Quebecor to Sector Perform from Outperform with an unchanged price target of C$38. The company could surprise positively on wireless loading in Q3, but financial pressure from not raising plan pricing on the cable side coupled with lower wireless average revenue per use and continued price competition from BCE is likely going to lead to weak year-over-year EBITDA performance, the analyst tells investors in a research note. The firm says Quebecor shares have has significantly outperformed peers year-to-date and valuations are now in fair value rang.