| Monday | ||||
As previously reported,… As previously reported, TD Securities analyst Vince Valentini upgraded Rogers Communications (RCI) to Action List Buy from Buy with a price target of C$83, up from C$80. He has lowered the interest rate assumption embedded in his price target calculation to 2.70% from 2.95%, which has pushed up his target by C$3 with virtually no forecast changes except shifting 3800 spectrum auction costs to Q4 of 2023 from Q1, noted Valentini. He also cites recent share-price weakness, noting that the valuation discount between Rogers B shares and its key peers BCE (BCE) and Telus (TU) has reached "almost all-time high levels," which he views as "extremely short-sighted and unjustified." | ||||
| Over a week ago | ||||
TD Securities analyst… TD Securities analyst Vince Valentini raised the firm's price target on BCE to C$67 from C$65 and keeps a Hold rating on the shares. | ||||
Scotiabank analyst Maher… Scotiabank analyst Maher Yaghi raised the firm's price target on BCE to C$68.50 from C$68 and keeps an Outperform rating on the shares. | ||||
Barclays analyst Kannan… Barclays analyst Kannan Venkateshwar raised the firm's price target on BCE to $51 from $49 and keeps an Equal Weight rating on the shares. Bell Canada's wireless momentum is a "supportive valuation driver," but while wireline broadband growth is fine, fixed investments are increasingly proving necessary to retain and grow share, Venkateshwar tells investors in a research note. | ||||
Backs 2022 revenue growth… Backs 2022 revenue growth view of 1%-5%, consensus $18.81B. | ||||
Reports Q2 revenue… Reports Q2 revenue $5.86M, consensus $4.57B. "The Bell team continues to deliver for all the stakeholders we serve. Q2 marked another quarter of consistent operational execution, demonstrating that our strategy to reach more Canadians in communities large and small across our footprint with the best network technologies, as well as our efforts to champion the customer experience is the right approach to move us forward," said CEO Mirko Bibic. "We continue to see momentum in wireless with 110,761 mobile phone net subscriber activations and strong service revenue growth. Our retail Internet net activations were also up 27.9% with 8% residential Internet revenue growth...By the end of the year, we will have invested $14B since 2020, including planned capital expenditures of approximately $5B for 2022, the highest amount ever by a Canadian telecom company in both a single year and over a three-year cycle. These massive investments are going towards our fibre-to-the-home and 5G wireless core networks, ongoing expansion into rural and remote communities, as well as on boosting capacity and ensuring resiliency." | ||||
Canaccord analyst… Canaccord analyst Aravinda Galappatthige lowered the firm's price target on BCE to C$66 from C$70 and keeps a Hold rating on the shares. | ||||
| Over a month ago | ||||
Scotiabank analyst Maher… Scotiabank analyst Maher Yaghi resumed coverage of BCE with an Outperform rating and C$68 price target. The analyst yesterday morning assumed coverage on 10 telecommunications and cable companies, both in Canada and the United States. He expects low-single-digit growth in Canada in 2022 and 2023, but says companies with higher wireless exposure should fare better. Yaghi is bullish on the Canadian wireless market, despite feeling it is too early to make an investment decision based on wireline technology. In the United States, valuations are not as elevated versus historical averages compared to Canada, likely due to the U.S. market's bigger pool of defensive investment vehicles, Yaghi told investors in a research note. He sees good prospects for U.S. stocks in terms of pricing, even in wireless, "potentially offering growth after many years of being under pressure." | ||||
ESE Entertainment… ESE Entertainment announced that it has entered into a memorandum of agreement with Dome Productions, a media production company jointly owned by Bell Media (BCE) and Rogers Media (RCI). Pursuant to the partnership, ESE and Dome will leverage their respective relationships and industry contacts to collaborate on several productions during each of the three years of the term. Further, ESE will provide Dome with the first right of refusal for ESE's North American broadcast facilities, while Dome will provide preferred pricing, access to engineering design, and technical workflow support. | ||||
OverActive Media (OAMCF)… OverActive Media (OAMCF) and Bell (BCE) announced the renewal and expansion of their partnership, first established in 2019, for an additional three years. The multi-year extension further connects Bell to esports fans and reinforces its engagement with the gaming community in Canada. In addition to providing gamers with the fastest Internet technology, Bell is levelling up its esports investment alongside OverActive in the following ways: Bell acting as presenting partner of OverActive's largescale esports events including Toronto Ultra Major III this month and the Toronto Defiant Summer Showdown in September. The Bell Fibe Zone, a top-tier professional esports practice facility within OverActive's Toronto-based headquarters that is fully powered by Bell pure fibre Internet. Producing branded content, including OverActive's top-performing series "Bell presents The Blueprint," which provides a behind-the-scenes look at Toronto Ultra as they experience the trials and tribulations of the Call of Duty League season. Jersey and broadcast branding integration for both Toronto Ultra and Toronto Defiant. | ||||
