Rogers Earnings: Cost Savings and Booming Wireless Growth Drive Strong Results

In a very strong quarter for Canada’s wireless carriers, Rogers clearly stood above all peers, as it far exceeded any competitor’s level of subscriber additions, and it didn’t see the same pricing pressure amid increased competition. The firm is also making rapid progress on the cost synergies it foresaw after closing its Shaw merger in April, leading to the margin expansion we think was critical to make the deal worthwhile. With the quarter's results magnifying our thesis, which also includes a stagnant wireline business, we’re raising our fair value estimate to CAD 78 from CAD 75, leaving the shares materially undervalued.