- Cogeco Communications Inc (TSX:CCA) (OTC:CGEAF) price target has been raised to C$130 from C$125 by BMO Capital Markets analyst Tim Casey.
- The analyst maintained the Market Perform rating on Cogeco shares.
- The analyst noted that the Q2 financials were in line. Subscriber trends reflect sequential improvement, albeit in line.
- Casey believes U.S. broadband growth concerns remain, but Cogeco's superior internet offering, network edge-outs, and higher bulk activity should improve performance.
- According to Casey, a lingering question still hovers over Cogeco's Canadian businesses on the path forward for its wireless plan. However, recent corporate activity (buybacks) suggests Cogeco may not be aggressively pursuing in-footprint Freedom Mobile assets.
- Casey sees increased M&A activity in the U.S. as a plus for Cogeco as it switches its asset mix toward more U.S. cable (particularly broadband). Still unsure about Cogeco's wireless intentions in Canada, the analyst do not feel they would be disruptive to present strategic priorities.
- Price Action: CCA shares are trading higher by 2.50% at C$113.56 on TSX on the last check Monday.
