Canaccord Raises Rogers Communications Inc. (RCI) Price Target to C$57, Keeps Buy

Core Viewpoint - Rogers Communications Inc. has shown improved financial performance, leading to an increased price target and maintained Buy rating from Canaccord, reflecting confidence in its earnings and cash flow outlook [1][3]. Financial Performance - The fourth-quarter results of Rogers Communications exceeded forecasts, driven by strong performance in the Media segment, particularly from sports assets and new content channels [3]. - Better-than-expected EBITDA and free cash flow were reported, with management's 2026 guidance indicating service revenue and free cash flow projections surpassing analyst expectations [3]. - Capital expenditure plans were slightly reduced, suggesting stronger medium-term cash generation and balance sheet improvement [3]. Market Position and Strategy - Despite flat wireless service revenue and pressure on ARPU, there are signs of stabilization in churn and a potential moderation in competitive intensity [3]. - The Cable segment continues to provide a stable earnings foundation, while the Media segment has emerged as a significant growth lever when programming performance is favorable [3]. - A sum-of-the-parts valuation approach indicates attractive upside potential, supporting a positive investment stance [3]. Company Overview - Founded in 1960 and headquartered in Toronto, Rogers Communications operates in wireless services, cable television, telephony, internet, and professional sports, positioning itself to generate resilient cash flows [4].