If you’re confused by the streaming video landscape these days, take heart. Your confusion is far from limited to you. In fact, in Canada, it’s turning into quite a problem and one that telecom giant Rogers Communications (TSE:RCI.B) (NYSE:RCI) hopes to address with some new plans. It didn’t help matters much with investors, though, as Rogers shares are down over 3% in Wednesday morning’s trading.
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According to a recent release from Rogers, which detailed its latest plans, Canadians believe that the number of streaming service platforms is “overwhelming.” Rogers, meanwhile, looks to fix that thanks to a new 10-year agreement with Comcast (NYSE:CMCSA) to bring Xfinity products to Canada.
The move comes at an opportune time, as further studies report that there are nearly double the amount of streaming apps available in Canada now as compared to just five years ago. Further, nearly half of Canadians in one study found that they simply couldn’t find the show they wanted to watch at the time despite the sheer number of tools available.
Shaky Earnings
While that might be considered good news by itself, Rogers also had to contend with less-than-impressive earnings results. Rogers brought out a mixed bag for its first-quarter figures, noting that revenue was up, but first-quarter profit was down nearly half of what it was a year prior. Rogers posted earnings of $256 million, a far cry from the $511 in 2023’s first quarter.
However, this came at the same time it posted revenue of $4.9 billion, which blew the $3.84 billion of 2023’s first quarter off the map. Reports point to the Shaw acquisition as a major cause of the discrepancy, suggesting a problem of limited duration.
What Is the Price Target for RCI.B Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on RCI.B stock based on 11 Buys assigned in the past three months, as indicated by the graphic below. After a 15.73% loss in its share price over the past year, the average RCI.B price target of C$74.32 per share implies 41.72% upside potential.
