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Rogers Communications Price Target Raised By C$2 at RBC

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RBC Capital Markets raised its price target on Rogers Communications Inc. (RCI-B.TO, RCI) to $63 from $61.

Analyst Drew McReynolds maintained an Outperform rating on shares of the Canadian media and telecom company following its quarterly results on Wednesday.

The stock rose $6.11, or 13.5%, to $51.21 on the Toronto Stock Exchange.

"Q1/26 results were in line to slightly ahead of expectations while 2026 FCF guidance was upwardly revised driven by lower capex," McReynolds said in a note to clients.

"We continue to see an equity reflation story for Rogers driven by FCF generation, outright debt repayment given the relatively low dividend payout ratio (under 30% of FCF), and further progress on balance sheet de-levering that now includes the completed $7 Billion structured equity investment and a clear path for crystallizing a minority interest in the sports and media assets," the analyst said.

"We continue to view the recent pullback as a buying opportunity and we continue to see value in the stock, particularly should: the operational environment show further improvement; any meaningful minority interest transaction in the sports and media assets be supportive of management's estimated more than $20 Billion valuation; and visibility on enhanced capital returns increase as leverage approaches near 3x."

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