Price target increased >GLTALongs 07:00 PM EST, 12/31/1969 (MT Newswires) -- Scotiabank raised its price target on Rogers Communications Inc. (RCI-B.TO) to $80 from $70 after factoring the synergies related to its merger with Shaw Communications.
Analyst Jeff Fan maintained a Sector Outperform rating on the Canadian telecom company.
Fan said there is an 85% probability of the transaction being completed following the CRTC's decision on mobile virtual network operators last week.
"Beyond the strategic rationale and the financial implications, we believe execution and integration will ultimately define this transaction over the next few years," the analyst said in a note to clients.
"We believe RCI has started the initial stages of the integration plan including the appointment of key leaders to the integration team," Fan said.
"As the market gains more comfort about the regulatory approval process, we expect the focus will shift towards integration. RCI should also be prepared that its competitors will take the opportunity to disrupt the integration process," the analyst said.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 60.96, Change: +0.38, Percent Change: +0.63