UPDATE: Bank of America Upgrades Shaw Communications to Buy on Competitive Dynamics

Bank of America raised its rating on Shaw Communications

from Neutral to Buy and raised its price objective to $23.25. Bank of America commented, "We have hiked our rating, estimates and our PO … following a strong 4Q12. … These revisions reverse the negative EPS revisions trend in place since 1H11. … Shaw's strong 4Q12 results indicate that promotional discounting is now easing (with more to come), and suggest a new competitive equilibrium. Recent commentary from both TELUS and Shaw is consistent with this view. [W]e should see a structural improvement in Shaw's subscriber performance over the next two years as the TELUS TV subscriber base expands and ages -- even if Shaw does not close the TV product gap. We see pricing headroom, with triple-play ARPU for Shaw below average at ~$132." Shaw Communications closed at $21.10 on Friday.