In a report published Thursday, BMO Capital Markets analyst Tim Casey downgraded the rating on Rogers Communications RCI from Outperform to Market Perform, and lowered the price target from $54.00 to $45.00.
In the report, BMO Capital Markets noted, “We are downgrading shares of Rogers Communications to Market Perform. There is growing uncertainty regarding wireless competition that we believe is causing a re-rating of incumbent wireless businesses. As such, we are downgrading shares of large incumbent providers with relatively high exposure to wireless. On a consolidated basis, Rogers, along with TELUS, derives >60% of its EBITDA from wireless, vs. ~30% for BCE and 0% for Shaw. Given that it has the largest base of wireless subscribers, we believe that Rogers has a significant amount to lose from the incursion of a new large, well-capitalized competitor (Verizon).”
Rogers Communications closed on Wednesday at $39.80.
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