Canaccord Genuity analyst Aravinda Galappatthige maintained a Buy rating on Quebecor (QBCRF – Research Report) today and set a price target of C$37.00.
Aravinda Galappatthige has given his Buy rating due to a combination of factors that highlight Quebecor’s financial resilience and growth potential. The company’s recent quarterly results showed a strong financial performance, particularly in adjusted EBITDA, which surpassed both the analyst’s and consensus estimates. This was largely driven by the Telecom segment and cost efficiencies at the head office level.
Despite some challenges in cable subscriber trends, the wireless segment performed well, meeting expectations with a significant increase in net additions compared to the previous year. Additionally, Quebecor’s decision to raise its annual dividend reflects confidence in its financial stability and future cash flow generation. These elements, combined with a solid balance sheet, underpin the positive outlook and justify the Buy rating.