Analyst Aravinda Galappatthige of Canaccord Genuity maintained a Buy rating on Rogers Communication, boosting the price target to C$55.00.
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Aravinda Galappatthige’s rating is based on a combination of factors that highlight both challenges and opportunities for Rogers Communications. Despite anticipating a slight decline in adjusted EBITDA for the third quarter, primarily due to seasonal impacts in the Media segment and reduced international roaming revenues, the analyst maintains a positive outlook on the company’s cable segment, which is expected to show steady returns. Additionally, the potential for higher valuations of Rogers’ sports assets, particularly with a prospective transaction involving MLSE, contributes to the optimistic view.
Another factor influencing the Buy rating is the anticipated recovery in wireless service revenue growth, which is expected to gradually improve post-Q3 2025. The easing of competitive intensity in the market is seen as a positive sign for Rogers’ underlying ARPU trends. Furthermore, the company’s efforts in cost rationalization and balance sheet improvement, particularly with the closing of the MLSE stake, are expected to strengthen its financial position. The target price increase to C$55 reflects these positive expectations, supporting the Buy recommendation.
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 -0.4% and a 48.98% success rate on recommended stocks.
In another report released on September 29, BMO Capital also maintained a Buy rating on the stock with a C$60.00 price target.