Quebecor wins price target raise at Desjardins

Following the company’s fourth quarter results, Desjardins analyst Jerome Dubreuil has raised his price target on Quebecor (Quebecor Stock Quote, Chart, News, Analysts, Financials TSX:QBR.B).

On February QBR.B reported its Q4 and fiscal 2024 results. In the fourth quarter, the company posted Adjusted EBITDA of $$589-million on revenue of $1.5-billion, a topline that was down 0.4%, year-over-year.

Thanks to rigorous operational management and strict financial discipline with respect to investments and liquidity, Quebecor delivered a solid performance in 2024 despite the highly competitive environment,” CEO Pierre Karl Péladeau said. “The Corporation posted increases of 17.6% in cash flows provided by operating activities, 8.6% in adjusted income from operating activities, 5.8% in adjusted EBITDA and 3.8% in revenues. Fourth‑quarter results were also strong, with increases of 16.9% in cash flows provided by operating activities and 4.2% in adjusted EBITDA. This remarkable performance enabled us to continue reducing our net debt and to bring our consolidated net debt leverage ratio down to 3.31x, the lowest among Canada’s major telecom providers.”

As reported by The Globe and Mail, Dubreuil February 28 maintained his “Buy” rating on Quebecor while raising his price target on the stock from $38.00 to $39.00.

“QBR is successfully progressing on its national expansion, achieving notable wireless market share gains outside of Quebec,” the analyst wrote. “We are, however, concerned with the cable business, which is affected by protracted intense competition in Quebec. Overall, QBR’s success-based capex approach enables it to generate robust FCF, which, combined with strong capital allocation, makes the stock attractive, in our view.”