Zacks Investment Research upgraded shares of Rogers Communications Inc. (RCI) from NEUTRAL to OUTPERFORM on October 03, 2012, with a target price of $49.00.
We are upgrading our recommendation on Rogers Communications to Outperform based on its current valuation, which is trading at significantly low multiples compared to the industry average and the S&P 500, with respect to several valuation metrics. We believe massive expansion of LTE networks and an attractive dividend yield will also boost the stock price in the near future. As of now, Rogers expanded its superfast LTE network to 60% of Canada. Management has aimed to achieve 100% foothold by the end of 2013. Deployment of LTE network has resulted in a 80% year over year increase of Internet usage by its subscribers. Growing demand for mobile data and huge activation of latest smartphones will pave the way for Rogers' future growth. The strategic decision taken by management to diversify in the mobile banking segment will also open up an additional revenue stream for the company.
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