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TSE:RCI.B
This summary was created by AI, based on 26 opinions in the last 12 months.
Rogers Communications (RCI.B) has garnered mixed reviews from experts, reflecting a complex landscape within the Canadian telecom sector. While some analysts appreciate its diversified business strategy, particularly the monetization of its sports assets, others express concerns about competitive pricing pressures and network quality. The company's lower dividend yield is viewed as a reason for investing in growth or debt reduction, appealing to value-seeking investors. However, there is caution due to the overall debt levels and uncertain growth outlook, leading to a consensus that the telecom sector, including Rogers, is underperforming compared to expectations. Analysts recognize the potential for Rogers to recover but remain wary of the competitive environment and the qualities of its acquisitions.
It pays a nice dividend. It is attempting to merge with the fourth player, Shaw. They are an essential utility. They have mildly good growth prospects for them. It would be a solid dividend investment. They are the backbone of the network we use for work-from-home.
(A Top Pick Oct 13/20, Up 21%) He would buy it again and still owns it. He is disappointed in the telecom carriers in general. Also people are worried about the debt they took in to buy Shaw. They are a long term infrastructure asset. He thinks this is a bargain that is not recognized.
He thinks there is a good chance the acquisition of Shaw will go through. They could increase their dividend over time. It is a long duration asset. He likes the sector in general. (Analysts’ price target is $70.73)
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They have finally gotten Shaw with a very large premium. A big deal at $26B. Regulators will surely be looking at this closely. Shares may come under pressure but they claim $1B in synergies and it should make a successful merger if the regulators allow this. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company missed estimates. The pandemic was responsible for severe reduction in roaming fees. EPS beat estimates but average revenue per user fell by 9%. Professional sports that are also less active is a factor. 10% growth is still expected and the problems are largely not the company’s fault. Unlock Premium - Try 5i Free