Rogers Communications downgraded to Equal Weight from Overweight at Barclays

Barclays downgraded Rogers Communications (RCI) to Equal Weight from Overweight with a price target of $27, down from $46. The Canadian telecom operating environment “may continue to see headwinds for a while and stretched balance sheets leave little room for error,” the analyst tells investors in a research note. The firm says Bell and Telus have been forced to respond to wireless promotions but have also cut prices in wireline broadband to put pressure on Rogers and Quebecor, leading to a price war in both wireless and wireline. Barclays believes there is now the added complication of structurally lower immigration volumes, which have been a material industry growth driver.