National Bank trims price target on Rogers Communications

National Bank Financial analyst Adam Shine says Rogers Communications’ (Rogers Communications Stock Quote, Chart, News, Analysts, Financials TSX:RCI.B) deal to buy the remaining 25% of Maple Leaf Sports & Entertainment is the first step toward surfacing value from its sports and media assets.

In response to the deal, Shine maintained his “Outperform” rating on Rogers but lowered his target to $62.00 from $63.00 The average target is $59.73.

Rogers announced July 6 that it will buy Kilmer Sports’ remaining 25% stake in MLSE for $4.35-billion, increasing its ownership to 100%. The transaction is expected to close in the fourth quarter of 2026, subject to league approvals.

Shine said the Kilmer deal was the first key step in preparing for a recapitalization of Rogers’ sports and media assets, which are expected to include MLSE, the Toronto Blue Jays, Rogers Centre and Sportsnet.

Rogers estimates the combined platform is worth more than $25-billion. Shine previously valued the platform at between $21.7-billion and $25.3-billion, before applying a 25% discount.

Rogers said it plans to finance the transaction with committed liquidity and still intends to sell a minority stake in the consolidated sports, media and entertainment assets over the next year.

“This is a defining moment for Rogers,” CEO Tony Staffieri said. “Our full ownership of MLSE brings together Canada’s premier communications company with Canada’s premier sports and entertainment organization.”

Rogers said full ownership of MLSE will allow it to invest in its teams, expand fan experiences and create more customer offers across its sports and telecom businesses.

MLSE owns the Toronto Maple Leafs, Toronto Raptors, Toronto FC and Toronto Argonauts. Rogers’ broader sports portfolio also includes the Blue Jays, Rogers Centre and Sportsnet, along with partnerships with several NHL teams, the NHL, NBA, MLB and Live Nation.

“Sports and entertainment are a core part of our business, and we plan to bring our world-class sports and entertainment assets together and surface more value for our shareholders long-term,” Staffieri said.

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