CIBC Capital Markets raised its price target on Quebecor (QBR-B.TO) to C$78 from C$67, and reduced its target on BCE (BCE.TO) to C$36 from C$37.
Analyst Stephanie Price maintained an Outperformer rating on both stocks as she previewed Q2 results for the Canadian telecom sector.
"Q2 was a slower quarter, given continued immigration headwinds; however, we believe it was less promotionally intensive than Q1," Price said in a note to clients.
"We are forecasting flattish growth in both consolidated industry revenue and adjusted EBITDA, with growth driven primarily by recent M&A," the analyst said.
CIBC is predicting a 1% year-on-year industry wireless average revenue per user decline in Q2, adding on from the 0.7% slip in Q1. That's as "elevated pricing competition in March flows through into Q2 ARPU," Price said.
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