Watch: Rogers, Lightspeed and MTY

Posted ago 16 minutes

The mercury will have particularly affected the results of the pizzeria. (Photo: 123RF)

What to do with the titles of Rogers, Lightspeed and MTY? 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, $ 59.63): Chief Financial Officer leaves ship

After nearly a decade as the chief financial officer of Canada’s biggest wireless player, Tony Staffieri is leaving Rogers. If this announcement serves as a general call for candidates, Aravinda Galappatthige of Canaccord Genuity believes that the company will need to quickly find the right fit.

As the downturn caused by the pandemic draws to a close, the company must redouble its efforts to improve its financial performance if it is not to be outnumbered by the competition in this race. Its quarterly results have been more volatile than the analyst expected, since the company’s financial package is more affected by the consequences of COVID-19, he concluded.

The next person who will occupy the post of Tony Staffieri will therefore have to regain investor confidence and present a clear game plan, while the title of Rogers weighs down its financial performance since the beginning of the year, recalls Aravinda Galappatthige.

Especially since a financial leverage of 5x – or even more – could be added to Rogers’ balance sheet when the Shaw acquisition is completed. Until then, other movements in senior management are also to be watched, slips the analyst. Rigorous financial management will therefore be necessary, but also to create synergies of a billion dollars announced between the two companies.

This is why he is convinced that investors’ eyes will be on the selection process.

In the meantime, it is Paulina Molnar who will take over the time of the interim the reins from the hands of the one who immediately leaves office. Tony Staffieri has been featured on numerous occasions among the most esteemed CFOs according to several surveys, and has earned the respect of players in the middle of various positions, notes Aravinda Galappatthige.

The analyst maintains his target price at $ 71, and his recommendation to buy.

To view the Lightspeed title, click next.

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