Search site Search ticker symbol

Are you looking for a stock?

Try one of these

Looking for value in Mr. Rogers' neighbourhood

A
A
 

Better-than expected results from its cable division and strong growth in smartphone customers will push Rogers Communications’ (RCI.B-T) shares higher in the coming months, according to Mackie Research.

Rogers’ cable operations reported earnings of $382 million, a 12.4-percent increase from a year earlier, as it increased Internet revenues and lowered overall operating costs, analyst D. Joseph MacKay of Mackie Research Capital said in a note to clients.

The company was also helped by strong growth in its smartphone customers, adding 534,000 subscribers to its wireless operations—a 53.4-percent increase from last year. It now has 3.31 million smartphones on its network, accounting for 45 percent of wireless subscribers on contacts.

“We continue to rate Rogers as our Top Pick in the sector and believe the shares have been oversold compared to its peers BCE and Telus due to concerns within the wireless business,” MacKay said.

MacKay has a $45 price target on Rogers’ shares.

But Crystal Maloney, senior analyst and portfolio manager at Aegon Capital Management tells BNN she doesn’t expect a major move for Rogers share.

“It wasn’t a bad quarter [for Rogers], but I would describe it as in line,” she says. “Expectations were kind of low going into the quarter.” 

CTV.ca CTV Two CTV News CTV News Channel BNN - Business News Network CP24