Cogeco Communications Earnings Estimates Revised Downward by National Bank Financial

Cogeco Communications Inc. (TSE:CCA - Free Report) is in the spotlight as shares experience a downgrade in earnings projections from stock analysts at National Bank Financial. In a research note released on Sunday, November 3rd, National Bank Financial analyst A. Shine revised the FY2025 earnings estimate for Cogeco Communications, predicting earnings of $7.92 per share instead of the previous forecast of $8.52. Despite this adjustment, National Bank Financial continues to maintain a 'Strong-Buy' rating on the stock, indicating a positive outlook overall.

Currently, the consensus among analysts for Cogeco Communications' full-year earnings stands at approximately $8.49 per share. Looking ahead, the firm also provided estimates for FY2026, forecasting earnings of $7.94 per share.

Analyst Ratings and Price Targets

Cogeco Communications has been the subject of various other research reports recently. Notably, Canaccord Genuity Group upgraded the stock from a 'hold' rating to a 'buy' rating and raised their price target from C$65.00 to C$77.00. In addition, the Royal Bank of Canada increased its price objective for shares from C$76.00 to C$79.00 in a report dated October 10th. Desjardins also adjusted their price target, moving it from C$64.00 to C$69.00, while maintaining a 'hold' rating.

TD Securities followed suit by elevating their price target to C$89.00 from a previous C$85.00. Lastly, Bank of America upgraded their assessment of Cogeco Communications from 'underperform' to 'buy', raising their price target from C$60.00 to C$65.00. Overall, five analysts have rated the stock with a hold recommendation, five have issued buy ratings, and one analyst has given it a strong buy rating, leading to an average rating of 'Moderate Buy' and a consensus price target of C$75.50 according to MarketBeat.com.

Current Stock Performance

As of Tuesday, shares of Cogeco Communications opened at C$69.94. The company holds a market cap of C$2.10 billion with a price-to-earnings ratio of 8.92. While the firm has a PEG ratio of 4.77 and a beta of 0.59, its financial ratios include a current ratio of 0.41, a quick ratio of 0.49, and an elevated debt-to-equity ratio of 142.88. The stock has been performing within a range of C$50.78 as the 12-month low and a high of C$72.40.

Company Overview

Cogeco Communications Inc operates primarily in the telecommunications sector within Canada and the United States, focusing on two main segments: Canadian Telecommunications and American Telecommunications. The company provides services including Internet, video, and Internet Protocol (IP) based telephony to residential and small business customers through its extensive two-way broadband fiber networks.

Final Thoughts

For those considering investments, it's worth noting that while Cogeco Communications maintains a 'Moderate Buy' rating from analysts, top-rated analysts have identified other stocks as potentially superior investment opportunities. Investors should evaluate all available information before making decisions regarding their portfolios.

Cogeco, NationalBank, Earnings