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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."
$CCA.TO$CGO.TO