Canaccord Adams Downgrades Shaw Communications (SJR) to Hold

January 14, 2009 11:19 AM EST

Canaccord Adams downgrades Shaw Communications Inc. (NYSE: SJR) from Buy to Hold. Price target lowered C$22 from C$29.

Canaccord analyst says, "Despite the weak Rogers cable subscriber results, we expect Shaw could report Q1/09 results that are in line with the growth reported during Q4/08, which was highlighted by increasing telephone penetration...We believe the company’s operating momentum could slow during the remainder of 2009 with slowing Internet subscriber growth and the effects of increasingly aggressive TV promotions by TELUS. Therefore we are lowering our 2009E revenues to $3.332 billion from $3.351 billion and our 2009E EBITDA to $1.504 billion from $1.522 billion, despite assuming no material surprises to upcoming Q1/09 results. While our target price reduction suggests limited upside, we also believe the $0.80 per annum dividend, which represents a 3.9% yield, could provide support to the current share price."

Shaw Communications, Inc., a diversified communications company, provides broadband cable television services, Internet, digital phone, telecommunications services, Direct-to-home (DTH) satellite services, and satellite distribution services primarily in Canada and the United States.

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