Analyst Note| Matthew Dolgin, CFA |
With Canada behind the United States in re-opening its economy during the second quarter, Rogers’ financial performance stagnated. We were disappointed in its wireless and cable revenue growth relative to last year’s second quarter, which took place at the height of lockdowns. The media segment unsurprisingly saw a dramatic improvement with the return of sports compared with the same period last year, but costs ballooned. In all, we think the recovery in Rogers’ stock has gotten ahead of its business improvement, and we no longer see it as undervalued. We are maintaining our CAD 67 fair value estimate.