UPDATE: BMO Capital Markets Upgrades Rogers Communication to Outperform on Improved Outlook
BMO Capital Markets upgraded Rogers Communication (NYSE: RCI) from Market Perform to Outperform and raised the price target from $47.00 to $52.50.
BMO Capital Markets commented, "Rogers is the largest wireless operator in Canada and we believe the outlook for incumbent carriers is attractive. We expect a positive shift in sentiment toward cable operators this year as they absorb IPTV competition and investors focus on their long-term broadband advantage. Finally, we expect attractive free cash flow from Rogers over our forecast period. All in, it seems to us the worst of competitive and regulatory threats has passed, or at least peaked, for Rogers. We expect a continued turn in sentiment on the name, and gradual multiple expansion."
Rogers Communication closed at $46.26 on Friday.
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