$CCA.TO

National Bank on Cogeco's US$1.2 Billion Non-Cash Impairment Charge

Cogeco Communications (CCA.TO) will be taking a US$1.2 billion non-cash impairment charge to goodwill and intangible assets related to its U.S. cable segment, Breezeline, when it reports its third-quarter results, notes National Bank.Analyst Adam Shine, who has an outperform rating and $75.00 price target on the shares, said, "Should anyone be surprised by this news? No, given the performance of Breezeline and the U.S. competitive landscape that has evolved over the last few years.""Now the question is naturally what comes next and how much deja vu is at hand," Shine adds, noting that Cogeco took a $226 million impairment charge on its Portuguese cable business, Cabovisao in July 2011 and then announced a sale of the business in February 2012.In the case of Cogeco Peer 1, its data-center business, its sale was announced in February 2019, but an impairment charge of $450 million was taken several years earlier, in 2016."We'll see what management has to say about the Breezeline impairment in six weeks. Based on precedent, however, we wonder if this is a signal of things to come within a year or in the next 3 years," Shine writes.Price: $65.84, Change: $-1.39, Percent Change: -2.06%

Cogeco Expects Near US$1.2B Non-Cash Impairment Charge For U.S. Business In Q3 FY26

Cogeco Communications (CCA.TO) expects a non-cash impairment charge of about $1.7 billion (US$1.2 billion) for the third quarter of fiscal 2026, the company said Monday.The amount, net of deferred income taxes, is related to the goodwill and intangible assets of the American telecommunications segment, it added.Cogeco said the charge reflects the "competitive environment" in which it operates in the United States. It added the preliminary charge amount will be finalized and recognized in the corporations' consolidated financial statements for the third quarter of fiscal 2026.This impairment charge is non-cash in nature and does not affect the corporations' cash flows or day-to-day operations, it said. "Cogeco is progressing with the implementation of measures to strengthen its performance in the United States, including the growth of its wireless service and the recent launch of a new fully digital second brand (welo)," it added.Cogeco shares closed up $0.90, to $67.22 on Friday on the Toronto Stock Exchange.

Cogeco Says Expected Charge of Near $1.7 Billion (US$1.2 Billion), Net of Deferred Income Taxes

Cogeco Announces a Non-cash Impairment Charge Related to its American Telecoms Segment

Cogeco And Cogeco Communications Upgraded To Buy At TD

Cogeco Communications Inc. (CCA.TO) and Cogeco Inc. (CGO.TO) were upgraded to Buy from Hold at TD Securities, Monday.Analyst Vince Valentini lowered his price target on shares of the Canadian telecom and media company to $83 from $85, and shares of its parent company to $81 from $85."CGO's valuation remains overwhelmingly driven by its equity stake in CCA, and therefore our change in view reflects the same core conclusion: CCA is pricing in far too much bad news relative to its free cash flow durability, balance sheet flexibility, and spectrum optionality," Valentini said in a note to clients."At the current CGO share price, investors are effectively gaining exposure to CCA at a double-digit discount to NAV, with limited downside protection from dividends," the analyst said."While broadband trends in the US and uncertainty around a potential multi-year wireless build in Canada continue to weigh on sentiment, we believe CGO shares already discount these risks."(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)