Scotiabank Raises Earnings Forecast for Rogers Communication in 2026

Equities researchers at Scotiabank have revised their earnings estimates for Rogers Communication, Inc. (NYSE: RCI; TSE: RCI.B) for the fiscal year 2026. In a report released on October 28, 2023, analyst M. Yaghi increased the projected earnings per share (EPS) from $3.78 to $3.82. This adjustment comes as Rogers continues its efforts to strengthen its position in the wireless communications market.

Scotiabank has assigned a “Sector Perform” rating to the stock, which reflects a cautious outlook amid mixed analyst reviews. The consensus estimate for Rogers Communication’s current full-year earnings stands at $3.57 per share. Other analysts have also weighed in on the company’s performance, with Barclays raising its target price from $31.00 to $33.00 and maintaining an “equal weight” rating as of August 12, 2023. Additionally, Weiss Ratings reiterated a “hold (c)” rating on October 8, 2023, while Cowen reaffirmed a “buy” rating on October 24, 2023.

Analysts’ ratings for Rogers Communication currently include three “buy” ratings, four “hold” ratings, and one “sell” rating, resulting in an average rating of “hold” and a target price of $33.00, according to data from MarketBeat.com.

Current Stock Performance and Financial Metrics

On October 26, 2023, shares of Rogers Communication opened at $39.43, reflecting a slight decline of 0.9%. The company has a market capitalization of $21.30 billion and key financial ratios indicating a quick ratio of 0.59, a current ratio of 0.62, and a debt-to-equity ratio of 1.55. The stock’s price-to-earnings (P/E) ratio is 4.38, with a price/earnings to growth (PEG) ratio of 3.29.

Rogers Communication’s 52-week performance has seen a low of $23.18 and a high of $40.26. The company reported its latest earnings results on October 23, 2023, revealing an EPS of $0.99 for the quarter, surpassing the consensus estimate of $0.92 by $0.07. Revenue for the quarter totaled $3.84 billion, falling short of expectations of $5.33 billion. The company recorded a return on equity of 17.14% and a net margin of 32.49%, with quarterly revenue increasing by 4.3% year-over-year.

Institutional Investment Trends

Recent trading activity indicates significant interest from institutional investors in Rogers Communication. Notably, Goldman Sachs Group Inc. increased its holdings in Rogers by 303.8% during the first quarter, acquiring an additional 4,166,861 shares, bringing its total to 5,538,620 shares, valued at approximately $148 million. Other institutions, including Picton Mahoney Asset Management and Platinum Investment Management Ltd., have also established new stakes in the company, valued at around $78.7 million and $77.7 million respectively.

The Canada Pension Plan Investment Board raised its position by 373.1% during the first quarter, now holding 2,870,559 shares valued at about $76.7 million. Similarly, Connor Clark & Lunn Investment Management Ltd. increased its stake by 380.4%, now owning 2,348,091 shares worth approximately $62.7 million. Currently, hedge funds and other institutional investors own 45.49% of Rogers Communication’s stock.

Rogers Communication operates as a leading communications and media company in Canada, offering a range of services, including mobile Internet access, wireless voice, device financing, and solutions for businesses under well-known brands such as Rogers, Fido, and chatr. As the company navigates a rapidly evolving telecommunications landscape, the adjustments in earnings forecasts and institutional investments will be closely monitored by investors and analysts alike.