Quebecor Inc.’s selling price target got a supercharge from analysts for numerous banks once the communications and marketing company posted powerful results on Wednesday.
CIBC, Desjardins, RBC and Barclays all brought up their price targets for the Montreal-based company after the release of its initially financial report given that former CEO Pierre Karl Pladeau came back to the top spot right after a hiatus as chief of the Parti Qubcois.
“We believe shares have been held again of late given (unfounded) concerns about what the present changes in leadership could mean for the go-forward strategy,” analyst Robert Bek authored in a note Thursday.
“Commentary from the call would make clear that Quebecor will follow the same playbook it has over the past decade, and with acceptable reason,” he composed, noting the heart telecom business “continues to fire on all cylinders.”
Subscriber numbers were far better than expected, with the cord business losing a lot fewer customers than likely. Videotron, Quebecor’s wireless arm, “remains prepared to enjoy catch-up growth when compared with peers” given its reduce revenue per customer, Bek wrote.
Bek, who brought up his price focus on to $43 from $41, acquired one of the more conservative outlooks intended for Quebecor.
Barclays analyst Phillip Huang raised the cost target to $49, RBC’s Received McReynolds boosted the target to help $45 from $44 and Desjardins’ Maher Yaghi elevated it to $44.50 from $44.
All pointed for you to wireless as the expected driver for suffered growth.
“Wireless still has significant headroom for growth,In . Huang wrote, adding in which Videotron only has 15 percent of the market share throughout Quebec and has a larger proportion of reduce revenue bring-your-own-device plans.
Investors reacted with equal expectations to the results along with Pladeau’s apparent commitment to preserving the strategy, sending Quebecor shares Thursday night to their highest level since September 2016.