Buy Rating Affirmed for Rogers Communications Amid Strong Growth and Positive Outlook

Rogers Communication (RCI – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst David Barden from Bank of America Securities reiterated a Buy rating on the stock and has a C$65.00 price target.

David Barden has given his Buy rating due to a combination of factors related to Rogers Communication’s (RCI) recent performance and future prospects. Since completing the Shaw cable merger in April 2023, RCI has experienced robust subscriber growth and has achieved synergy targets ahead of schedule, demonstrating strong operational efficiency. Additionally, RCI is anticipated to continue leading in wireless subscriber growth and to see margin expansion in both wireless and cable sectors. This positive outlook is bolstered by the expectation of increasing free cash flow, solidifying RCI’s position as the preferred choice within the Canadian telecom sector.

Barden’s optimism is further supported by the expected reiteration of RCI’s 2024 guidance in the upcoming second-quarter results, with strong demand in wireless and broadband services projected to drive service revenue growth. Despite minor adjustments to estimates reflecting a slightly slower market and increased competitive intensity, Barden has increased margin forecasts for both wireless and cable operations. The overall positive trajectory, including a turnaround to cable revenue growth by year’s end and consistent cost efficiencies, underpins the Buy rating and the belief that RCI is on track to meet its adjusted EBITDA growth targets.

Barden covers the Communication Services sector, focusing on stocks such as T Mobile US, BCE, and AT&T. According to TipRanks, Barden has an average return of 4.4% and a 54.26% success rate on recommended stocks.

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Rogers Communication (RCI) Company Description:

Incorporated in 1960, Canada-based Rogers Communications, Inc. provides wireless communications services. It operates its business through the following segments: Wireless, Cable, and Media.