More Green Shoots for TelecomPricing Discipline Could Help Canadian Telecom Stocks
Canadian telecoms are showing signs of better pricing discipline in the run-up to 1Q results. TD Cowen analyst Vince Valentini says in a report that pricing convergence is starting to occur among the wireless providers, and that Rogers' Fido has now "largely matched the initial moves we saw from Koodo/Virgin two weeks ago," with the 20GB for C$34 plan--which had been 50GB in March--now moving up to C$39. With earnings around the quarter, the timing is "excellent, in our view. Rogers and BCE shares are both off 15% YTD, while Telus and Quebecor are down as well, but not quite as much," Valentini notes. This could be good for the entire sector, he says.
(adriano.marchese@wsj.com)