Why Did Rogers Communications Shares Lose 6% Today?

October 25, 2021 4:25 PM | 1 min read

RBC Capital analyst Drew McReynolds downgraded Rogers Communications Inc RCI to Sector Perform from Outperform with a price target of C$72, down from C$76, implying a 48.5% upside.
The analyst cites the "ongoing" board dispute and contends that the company needs a "functioning" governance to address the proposed remedies on the Shaw (SJR) transaction, transaction financing, crystallization of any non-telecom assets, a multi-year integration, and critical 5G spectrum auctions.
McReynolds adds, however, that he continues to see a high probability of the Rogers-Shaw transaction closing, given the solid and broad internal support at Rogers for the transaction.
Price Action: RCI shares traded closed by 5.84% at $45.66 on Monday.