Canaccord Genuity Keeps Buy Rating on Rogers Communication Amid Earnings Release

Canaccord Genuity analyst Aravinda Galappatthige maintained a Buy rating on Rogers (ROG) with a $79.00 average price target. The company reported a quarterly revenue of $190.5 million and a GAAP net loss of $1.4 million in Q1. Corporate insider sentiment is negative, with 45 insiders selling shares in the past quarter. The analyst consensus rating for ROG is Moderate Buy.

Rogers Communications (NYSE: RCI) has launched a strategic debt management initiative with a cash tender offer to purchase up to C$400 million of its outstanding senior notes across six different series. The tender offers, which include notes with maturities ranging from 2027 to 2049, aim to optimize the company's capital structure by repurchasing notes with varying maturities and interest rates. The offers will expire at 5:00 p.m. ET on July 18, 2025, with settlement expected on July 23, 2025 [1].

The tender offers are not subject to any minimum aggregate principal amount or financing conditions, indicating that Rogers has sufficient liquidity to fund these repurchases. The company has retained Merrill Lynch Canada, RBC Dominion Securities, Scotia Capital, and TD Securities as joint lead dealer managers for the offers. The pricing mechanism for the repurchases is based on a fixed spread over the yield of specified Canadian reference securities, ensuring fair valuation in the current rate environment [1].

From a financial engineering perspective, this transaction allows Rogers to optimize its debt maturity profile and potentially reduce interest expenses if the company can refinance at more favorable rates. The C$400 million maximum purchase amount represents a targeted approach rather than a comprehensive debt reduction program. The company's flexibility to increase, decrease, or waive the maximum purchase amount provides additional optionality based on market response and strategic priorities [1].

Analyst Aravinda Galappatthige of Canaccord Genuity maintained a Buy rating on Rogers (ROG) with a $79.00 average price target. The company reported a quarterly revenue of $190.5 million and a GAAP net loss of $1.4 million in Q1. Corporate insider sentiment is negative, with 45 insiders selling shares in the past quarter. The analyst consensus rating for ROG is Moderate Buy [2].

References:
[1] https://www.stocktitan.net/news/RCI/rogers-announces-cash-tender-offers-for-six-series-of-debt-rgnz6kof1w26.html
[2] https://www.canaccordgenuity.com