Quebecor: Committed to Its National Expansion Even as Uncertainty Looms; Shares Undervalued

After re-evaluating Quebecor and its efforts to expand into Canada’s fourth major wireless service provider, we’ve reduced our moat rating to no-moat from narrow. We’ve also trimmed our fair value to CAD 37 from CAD 40. While the stock looks undervalued to us, we prefer the shares of its big three rivals, BCE, Telus, and Rogers, which trade in 5-star territory.