RCI Should I Buy

As previously reported, TD Securities downgraded Rogers Communications (RCI) to Hold from Buy with a C$56 price target, Telus (TU) to Hold from Buy with a C$19 price target, and BCE (BCE) to Hold from Buy with a C$37 price target. The data on key volume and price drivers has been weak throughout Q1 and with bond yields rising, and the "risk" that war-related fears could ease in coming months, the firm believes investors could start focusing more on core pricing and growth fundamentals for these telcos. If either website or in-store pricing reverts back to what is being seen in March, then the firm believes "there could be even further downside risk to our estimates and target prices," says the analyst, who is lowering wireless ARPU growth estimates by 100 basis points versus previous forecasts for each of Rogers, BCE, and Telus across each of the next seven quarters.