08:02 AM EST, 11/09/2021 (MT Newswires) -- Shaw Communications Inc. (SJR-B.TO, SJR) was upgraded to Outperform from Sector Perform at RBC Capital Markets.
Analyst Drew McReynolds maintained a $40.50 price target on shares of the Calgary-based telecom company.
McReynolds said the upgrade follows what appears to be a definitive resolution around the board dispute at Rogers Communications Inc. (RCI-B.TO).
The analyst said there is an attractive risk-adjusted return in Shaw relative to the proposed takeout value of $40.50 per share by Rogers.
"Given what we believe is a high likelihood of deal approval by H1/22, and with downside in a no-deal scenario anchored by our standalone value, we believe the risk-adjusted return is compelling within our telecom coverage," McReynolds said in a note to clients.
"Furthermore, in the low probability scenario where the deal does not close, we see other potential strategic suitors for Shaw (such as Quebecor) further limiting the downside in Shaw shares."
(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)
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