Canaccord Raises Rogers Communications Inc. (RCI) Price Target to C$57, Keeps Buy
We recently published an article titled 11 Best Canadian Growth Stocks to Buy According to Hedge Funds.
On January 30, Canaccord raised its price target on Rogers Communications Inc. (NYSE:RCI) to C$57 from C$55 while maintaining a Buy rating, reflecting increased confidence in the company’s earnings trajectory and cash flow outlook. The upward revision follows a quarterly performance that modestly exceeded expectations and reinforces the view that Rogers’ diversified asset base is beginning to translate into improved financial visibility. The maintained Buy recommendation signals that, despite ongoing competitive pressures in wireless, the firm sees sufficient upside supported by operational momentum and valuation.
Rogers Communications Inc. (NYSE:RCI)’s fourth-quarter results surpassed forecasts, primarily driven by strength in the Media segment, where sports assets and recently launched content channels generated outsized contributions. This outperformance supported better-than-expected EBITDA and free cash flow. Management’s 2026 guidance was incrementally constructive, with service revenue and free cash flow projections exceeding analyst expectations, while capital expenditure plans were slightly reduced, implying stronger medium-term cash generation and balance sheet improvement. Although wireless service revenue was flat and ARPU remained pressured, stabilization in churn and sequential improvement suggest that competitive intensity may be moderating. The Cable segment continued to provide a stable earnings foundation, while Media has emerged as a meaningful upside lever when programming performance aligns favorably. While leverage remains elevated, improving free cash flow and disciplined capital allocation support a manageable profile. A sum-of-the-parts valuation approach, applying differentiated EV/EBITDA multiples across wireless, cable, and media, indicates attractive upside potential, underpinning the positive investment stance.
Founded in 1960 and headquartered in Toronto, Rogers Communications Inc. (NYSE:RCI) is a Canadian communications and media company with operations spanning wireless services, cable television, telephony, internet, and professional sports assets. Its diversified platform and integrated infrastructure position the company to generate resilient cash flows while capitalizing on content, connectivity, and data consumption trends.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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