TD raises price target on Quebecor

TD Cowen analyst Vince Valentini raised his earnings forecasts for Quebecor (Quebecor Stock Quote, Chart, News, Analysts, Financials TSE:QBR.B) through 2027 and increased his target to a Street-high $58.00 from $55.00, reiterating a “Buy” rating, after new channel checks suggested Black Friday discounting “did not disrupt favourable momentum” for Freedom Mobile.

As reported by the Globe and Mail, Valentini now expects fiscal Q4 wireless subscription additions of roughly 85,000, up from his prior 75,000 estimate, along with a return to positive ARPU growth of about 1% year over year.

He said industry behaviour over Black Friday “was not perfect,” but conditions proved “better than prior years,” reinforcing his view that Quebecor remains positioned for strong wireless results in Q4, with mobile revenue growth continuing to more than offset modest cable declines.

He noted that Rogers’ more aggressive fixed-wireless push in Quebec has prompted Freedom to respond with a $24 fixed wireless access offer in Ontario, and that certain prepaid brands remain at $29 for meaningful data buckets. He said these dynamics temper his enthusiasm for 2026, but do not alter near-term momentum.

Valentini added that Quebecor has materially outperformed peers over the past year and now trades at the highest EV/EBITDA multiple in the group. His target already assumes a 9.5× multiple on wireless EBITDA versus roughly 7.9× for Rogers, BCE and Telus, leaving limited room for further multiple expansion; however, stronger estimates and time-supported valuation math justified the increase.

He said Quebecor continues to manage capex and free cash flow well while expanding revenue and EBITDA through Freedom. Over time, he expects the company to rely more on marketing and brand positioning rather than pricing to emphasize network quality, with additional upside potential from mobile virtual network operator participation, continued growth of its Fizz digital-only, value-oriented wireless brand, and bundling.

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