Telecom Stocks May Offer Upside as Bad News Already Priced In, Analyst Says

Telecom sector may rebound as investors turn overly negative, according to Vince Valentini, managing director of equity research at TD Cowen. Undervalued stocks such as Rogers Communications, Thomson Reuters, and Cogeco Communications are trading below fair value despite improving fundamentals and cash flow growth. Valentini sees Rogers as a top pick with easing leverage concerns and wireless market pricing improvements, while Thomson Reuters' pullback may be overdone with its AI-driven tools maintaining a competitive edge. Cogeco Communications trades at steep discounts despite high free cash flow and dividend potential. Market sentiment on telecoms is overly bearish, creating attractive entry points for investors. Free cash flow growth across major telecoms could drive valuation recovery into 2025.