Rogers Communications upgraded to Outperform from Sector Perform at Scotiabank

Scotiabank upgraded Rogers Communications (RCI) to Outperform from Sector Perform with a price target of C$60.50, up from C$57.75. The company’s decision to reduce capex spend and focus on improving free cash flow amid regulatory policy headwinds is “exactly the right call,” the analyst tells investors in a research note. Scotiabank expects a sustainable share rally on Rogers’ improved free cash flow generation. The firm sees a “good amount of potential valuation upside to reflect the new payout ratio equilibrium.”