Rogers Communications (RCI)

We are downgrading our recommendation on Rogers Communications (TM - Analyst Report) to Underperform following its weak financial results for the first quarter of 2012, which missed the Zacks Consensus Estimates. Rogers is currently facing tremendous pressure in all three of its business segments.

The Canadian Wireless market has become increasingly competitive, exerting headwinds on Rogers' ARPU and margins. In the previous quarter, the growth rate of the wireless data revenue slowed further. Meanwhile, the Cable segment has started facing the brunt of its competition's aggressive rollout of IPTV. The Media segment is facing continued softness in the advertisement market.

We believe huge competitive threats in all front may jeopardize the company's free cash flow and profitability in the future reporting quarters. We do not find any immediate growth catalyst for Rogers Communications.

Rogers Communications (RCI) : FULL ANALYST REPORT

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Read the full analyst report on RCI

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