Rogers Communications Inc. (RCI-B:CA) (RCI)
BMO Capital Markets has raised its 12 month target price for Rogers Communications Inc. to CAD $57 from CAD $55, reflecting a more optimistic outlook on the company’s core business segments.
The valuation upgrade is based on improving dynamics in the wireless pricing environment, where reduced competition and disciplined promotional activity are leading to stronger average revenue per user (ARPU) trends.
BMO also highlights the underappreciated value of Rogers’ sports and media assets, including its ownership stakes in the Toronto Blue Jays and Sportsnet, which could provide additional upside through monetization or improved performance.
The ongoing integration of Shaw Communications, and a focus on deleveraging, BMO believes Rogers is positioned for revenue growth, margin expansion, and enhanced shareholder value in the near to medium term.
The consensus analyst rating for Rogers Communications is set at a “Buy” rating, with the average 12-month target price across all analysts at CAD $55.00 per share, suggesting about 26% upside from current levels.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
The upgrade from BMO seems well-founded, especially given the improving ARPU trends in the wireless segment. I’m also intrigued by the potential of Rogers’ sports and media assets—those often get overlooked but could become key value drivers if leveraged strategically.