Saturday, July 24

To watch: Rogers, Intact and Stelco

Posted ago 40 minutes

(Photo: 123RF)

What to do with the securities of Rogers Communications, Intact Financial Corporation and Stelco Holdings Inc? Here are some recommendations from analysts likely to move prices in the near future. Note: the author may have a totally different opinion from that expressed.

Rogers Communications (RCI.B, $ 65.79): Don’t be intimidated by the Q3 outlook

While the Q2 results released on July 21, 2021 were pretty much in line with expectations, it appears investors have not prized some comments from executives on the Q3 outlook, and the share price has lost nearly 4% during the ensuing trading session.

Consequently, Jerome Dubreuil, analyst at Desjardins, reduced his short-term forecasts somewhat. But it keeps its forecast for 2022 intact and it reiterates its buy recommendation and its target price of $ 76 for the next twelve months.

Management’s moderate expectations for Q3 are primarily driven by the negative impact on average revenue per customer from lower cellular data usage. This average income turns out to be less for 2021 than what analysts predicted is showing management.

The Desjardins analyst believes, however, that a rapid return to the use of data closer to the pre-pandemic trend will not be long in coming. And as he also foresees an increase in the number of customers, the scenario for the wireless sector seems very attractive to him.

While the forecast for Rogers’ results for 2022 are probably the most affected by the impact of the pandemic, Jerome Dubreuil believes that the Toronto-based telecommunications firm is among the cheapest in the industry on a basis of l ‘business / earnings before interest, taxes and depreciation (EBITDA). But he believes the impact will only be temporary, which puts the title in a good position.

Second quarter consolidated revenues totaled $ 3.48 billion, EBITDA was $ 1.37 billion and earnings per share were $ 0.76. All of these results are substantially in line with analyst consensus forecasts.

Intact Financial Corporation (IFC, $ 170.08): results that will be scrutinized

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