OTCPK:SJRWF - Post by User
Post by
Aggirl7on Oct 12, 2017 4:53pm
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Post# 26806702
Scotia downgrade
Scotia downgrade
The Scotia analyst downgraded Shaw today to Sector Perform and lowered his target to C$30 from C$32. Excerpt from note is below.
Long-Term Growth Still Intact but More Patience Required
OUR TAKE: We are downgrading SJR from SO to SP and lowering our one-year
target price from $32 to $30. We believe the long-term growth driven by wireless remains significant and we remain positive on the long-term prospects. However, we believe that without network sharing, it will require more capex by SJR beyond 2018. We also believe that the addition of the iPhone will create a larger divergence in the reported wireless EBITDA and the cash-based wireless EBITDA comparable to its peers. We do not believe the market has fully factored either the F19 capex into their estimates or the EBITDA divergence in their valuation. With both factored in, SJR’s F17-F19 growth/valuation profile is not as favourable over the next 12-18 months. SJR currently trades at 9.2x NTM EV/EBITDA, 27.5x EV/Cash EBIT, and 2.4% FCF yield.