Rogers Earnings: Solid Results Show No Signs of Waning Strength

We believe Rogers Communications is extremely undervalued as the market has overly discounted a challenging Canadian telecom industry, where growth for the Big Three incumbents is likely to slow amid heightened competition and fleeting tailwinds. Yet first-quarter results once again exceeded our expectations across many crucial data points, and management expects business to improve further throughout 2024. We’re maintaining our CAD 78 fair value estimate and see narrow-moat Rogers as one of our best ideas.