$CGO.TO

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)