Shares of Rogers Communications Inc. (RCI/B:TSX) have experienced significant volatility over the past few weeks, initially falling 15 percent as investors fled amid a telecom wireless price war, only to recover some ground after earnings matched estimates. Following this turbulence, TD Cowen analyst Vince Valentini raised his price target for Rogers to $60 from $56 and upgraded his rating to buy from hold, labeling the negative sentiment as “excessive.” Valentini stated in a note on Wednesday that “we believe that the market continues to underestimate both the value of the company’s sports assets and the potential timing of their monetization.” Shares closed Friday at $49.26, implying a potential upside of approximately 22 percent to Valentini’s target.
Analyst Sees Catalysts for Rogers
Valentini expects a deal to proceed for Rogers to acquire a 25 percent stake in Maple Leaf Sports and Entertainment (MLSE) from Kilmer Sports Inc., though he noted the transaction could occur later than anticipated. On the wireless front, the analyst said telcos have recognized that price wars were “destructive and unacceptable.” He highlighted four catalysts for Rogers shares: ongoing debt reduction to align with peers, further savings from the Shaw Communications Inc. acquisition, additional “non-core” asset sales, and more information on monetizing MLSE. Desjardins Capital Markets analyst Jerome Dubreuil also raised his price target to $59 from $54.50, citing a “clear positive” in the significant reduction in capital spending. However, Dubreuil noted that markets did not react as positively as expected to the spending cuts. Rogers’ 12-month consensus target price, based on 17 analysts, stands at $59.25, according to Bloomberg.
Rosenberg Research Highlights Post-War Winners
David Rosenberg, president of Rosenberg Research and Associates Inc., identified alternative energy as a major beneficiary of the U.S.-Israel-Iran conflict. “Alternative energy will be a big winner of the U.S.-Israel-Iran war,” Rosenberg said in a note, adding that the backlash against clean energy is unwinding as the conflict underscores energy security as a top global priority. He advised investors to manage geopolitical risk at the portfolio level rather than trading impulsively. Investment opportunities in renewables extend beyond energy generation to include batteries, grid modernization, and energy storage, while commodities linked to alternative energy range from copper and uranium to lithium, nickel, and rare earths. Rosenberg suggested several ETFs for exposure: iShares Energy Storage and Materials ETF (IBAT), iShares Global Clean Energy ETF (ICLN), Global X Copper Miners ETF (COPX), Evolve Global Materials and Mining Enhanced Yield ETF (BASE), Global X Copper Producer Equity Covered Call ETF (CPCC), VanEck Rare Earth and Strategic Metals ETF (REMX), and Global X Uranium ETF (URA). Since the war began, the ICLN ETF has risen nearly 10 percent. “For investors, renewable energy will increasingly be both a source of diversified return and a hedge in portfolio construction,” Rosenberg said.
Enbridge Gains on Pipeline Expansion Approval
Shares of Enbridge Inc. (ENB:TSX) received a boost on Friday after the federal government approved the $4 billion expansion of the company’s Westcoast pipeline system, which will add up to 300 million cubic feet per day of natural gas transportation capacity on B.C.’s major transmission system. Construction is scheduled to begin this summer, subject to environmental, safety, and Indigenous engagement concerns. Enbridge shares have declined through April but are up 10 percent year to date, closing Friday at $72.86. The 12-month consensus price target based on 23 analysts is $76.15, a level the stock hit late last month. Some analysts see further upside unrelated to the expansion. UBS Research analyst Manav Gupta set a price target of $85, citing recently approved U.S. permits critical to Enbridge’s Main Line Optimization plan, which transports crude oil from western Canada to the U.S. Veritas Investment Research analyst Darryl McCoubrey has a target of $82, “largely due to favourable market conditions for North American natural gas infrastructure development,” he said in a note on Friday.
