Rogers Communications Could See Equity Reflation Driven by FCF Generation, RBC Says

MT Newswires Live07-24 00:28

Rogers Communications (RCI) could see an equity reflation story driven by free cash flow generation, outright debt repayment and further progress on balance sheet de-levering, RBC Capital Markets said in a Wednesday research report.

Noting the 0.5% sequential deceleration in wireless network revenue growth in Q2, RBC said that the management remains optimistic of an eventual return to positive wireless ARPU growth driven by value propositions resonating well in more stable pricing environment, RBC said Wednesday.

With Rogers' cable service revenue rising 0.7% in Q2, representing the company's fifth consecutive quarter of year-on-year growth, RBC said that it views this cable trajectory as industry-leading given that it is delivering low-single-digit growth despite absorbing satellite TV pressure.

RBC maintained its outperform rating with a CA$60 ($42.60) price target on the company's stock.

Price: 33.23, Change: +0.27, Percent Change: +0.83

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