TD Securities Cuts Rogers Comm (RCI) to Hold; 'Verizon (VZ) is Coming'

July 22, 2013 7:26 AM EDT Send to a Friend
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Price: $35.01 --0%

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TD Securities downgraded Rogers Communications (NYSE: RCI) from Buy to Hold with a price target of $44.00 (from $49.00). Analyst Vince Valentini is concerned about competition as Verizon (NYSE: VZ) enters the market in Canada.

"We believe that Verizon is coming, but we do not know how fast. Discussions with regulators and/or strategic partners could dictate whether Verizon can be up and running within 6–9 months versus 2–3 years," said Valentini.

"On the regulatory front, Verizon could initiate service quicker with a hybrid network (some owned and some leased) if Industry Canada forces the incumbents to share their networks via roaming and tower sharing at low rates. We suspect that Verizon’s plan would be to buy/build its own spectrum and network over time, but it could likely start offering attractive nationwide packages right away if the regulations allow it to augment the arguably thin urban network acquired from WIND/Mobilicity with low-cost roaming on one of the incumbent networks," he added.

For an analyst ratings summary and ratings history on Rogers Communications (NYSE: RCI) click here. For more ratings news on Rogers Communications click here.

Shares of Rogers Communications closed at $40.61 yesterday.

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