Rogers Communications is facing headwinds, TD Cowen says

He’s has a “Buy” rating on the stock, but TD Cowen analyst Vince Valentini thinks 2025 could be a rocky road for Rogers Communications (Rogers Communications Stock Quote, Chart, News, Analysts, Financials TSX:RCI.B).

As reported by the Globe and Mail, Valentini April 1 reiterated his “Buy” rating and 12-month price target of $64.00 on Rogers. The analyst cautioned that he may be less optimistic than his price target suggests.

“We are aware that our TP points to material upside potential for RCI.B shares, which we believe is very possible over the next year, but we predict continued volatility and negative sentiment towards the name until we find out if/how they plan to monetize sports equity to reduce debt, which we suspect could be another few months,” he wrote. “Some clarity on the infrastructure funding could be a mild positive as well, in our view.”

On April 2, Rogers furthered its foray into the world of sports, inking a deal with the National Hockey League to broadcast games until the 2037/2038 season, for which the company will pay $11.0-billion.

“The NHL has been a terrific partner for over a decade, and we’re proud to continue our partnership and bring more great fan experiences and best-in-class broadcasts to Canadians,” CEO Tony Staffieri said. “Hockey is Canada’s game, and we’re proud to be the home of hockey. Sports are core to our company, and these rights are the most valuable sports rights in Canada.””

Shares of Rogers closed April 4 up 0.1% to $36.73.