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Is Rogers Communications (TSX:RCI.B) Undervalued After Its Recent Share Price Outperformance?

Simply Wall St · 2d ago

Rogers Communications (TSX:RCI.B) has quietly outperformed the broader Canadian telecom space this year, and that strength has some investors revisiting whether the recent pullback is a chance to add or trim.

See our latest analysis for Rogers Communications.

At around CA$50.69, Rogers’ year to date share price return of roughly 15.8% points to steady, if moderating, momentum, while the 1 year total shareholder return of about 9.6% shows gains that look respectable but not spectacular.

If this kind of steady compounder appeals to you, it might also be worth seeing what else is out there by exploring fast growing stocks with high insider ownership.

With earnings under pressure but the share price still climbing and analysts seeing further upside, the real question is whether Rogers is quietly undervalued or if the market is already pricing in its next leg of growth.

Most Popular Narrative: 14.1% Undervalued

With Rogers Communications last closing at CA$50.69 against a narrative fair value of about CA$59.04, the implied upside hinges on sustained earnings and margin improvement.

The continued deployment and expansion of 5G and Wi Fi 7 infrastructure, along with the introduction of advanced services like fixed wireless internet and bundled offerings, allows Rogers to capitalize on increasing mobile data consumption and connected device proliferation, supporting both subscriber additions and higher margins in future periods.

Read the complete narrative.

Curious how steady revenue gains, expanding margins and a lower future earnings multiple can still add up to meaningful upside? The narrative breaks down the full playbook, including the specific growth and profitability paths that underpin this higher fair value.

Result: Fair Value of $59.04 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regulatory intervention and a slowing, saturated wireless market could quickly blunt Rogers’ pricing power and subscriber growth and could derail the current upside narrative.

Find out about the key risks to this Rogers Communications narrative.

Build Your Own Rogers Communications Narrative

If you see the numbers differently or prefer to dig into the details yourself, you can build a personalised view in minutes: Do it your way.

A great starting point for your Rogers Communications research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.