Quebecor wins price target raise at TD Cowen

TD Cowen analyst Vince Valentini says he is feeling more bullish about Quebecor (Quebecor Stock Quote, Chart, News, Analysts, Financials TSX:QBR.B).

As reported by the Globe and Mail, Valentini April 1 maintained his “Buy” rating and raised his price target on QBR from $40.00 to $45.00.

“Given elevated confidence in the company’s balance sheet and FCF profile, we are willing to shift our valuation horizon forward to 2026 versus 2025 at this time (typically we would do this sometime in the May to July timeframe), and we reiterate that the FCF yield implied by our target price remains arguably attractive on both an absolute and a relative basis, at 10 per cent (FCF/share estimate of $4.45 in 2026, which is aided by our assumption of continued share buybacks with excess cash, now that debt leverage is nearing 3.0 times),” Valenti wrote.

On February 27, QBR reported its Q4 and fiscal 2024 results. In 2024, the company posted Adjusted EBITDA of $2.37-billion on revenue of $5.64-billion, up from $5.43-billion in fiscal 2023.

“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 provider.”

At press time, shares of Quebecor were up 1.1% to $36.71.