Bank of America Securities analyst Matthew Griffiths has maintained their neutral stance on RCI stock, giving a Hold rating on April 1.
Matthew Griffiths has given his Hold rating due to a combination of factors impacting Rogers Communication’s financial outlook. The recent agreement with Blackstone for a C$7.0 billion equity investment is expected to reduce Rogers’ leverage by 0.7x, aligning with their post-Shaw acquisition leverage target of 3.5x by the second quarter of 2026. However, the deal is considered valuation neutral as the reduction in net debt is counterbalanced by the minority interest in the wireless backhaul subsidiary.
Additionally, the pending C$4.7 billion acquisition of Maple Leaf Sports & Entertainment is anticipated to close by mid-2025, with no expected impact on leverage. While the partnership with Blackstone will provide annual distributions of approximately C$400 million in the first five years, the financial benefits are largely offset by the interest savings. These factors contribute to maintaining a Neutral rating, with a price objective set at C$50.00.
In another report released on April 1, Scotiabank also downgraded the stock to a Hold with a C$50.00 price target.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RCI in relation to earlier this year.