Cogeco Maintained 'Sector Underperformer' By CIBC
Friday, January 27, 2022 12:49 PM

CIBC World Markets Inc. maintained its "Sector Underperformer" rating on Cogeco Inc. (TSX:CGO.TO), while trimming price target on the communications company to $46 from $47.

The Canadian company posted first-quarter results that were light of our estimates, with a disappointing performance from Canada on lower EBITDA margins, and continued weakness in Portugal, the brokerage said.

CIBC analyst Robert Bek is advising investors play upside through CCA ownership directly. On October 27, Bek downgraded the stock from "Sector Performer" to "Sector Underperformer".

Bek cut his 2012 EPS estimates for the company to $4.25 from $4.80 and 2013 EPS estimates to $4.61 from $5.43.

Cogeco is engaged in cable television, high speed Internet, telephony and other telecommunications services to its residential and commercial customers in Canada and in Portugal.

On Friday, the stock rose 1.19 percent to trade at $46.75. The shares have been trading between $37.38 and $50.64 over the past year.