BMO Cuts Roger Communications’ Price Target After Boardroom Drama Flares Up
On October 8th, The Globe and Mail reported on the recent and abrupt departure of Rogers Communications (TSX: RCI) CFO, Tony Staffieri. The Globe and Mail says that the departure was after multiple heated disagreements with the Rogers family around how the companies leadership should be.
After this news, 1 analyst lowered their 12-month price target, bringing the average 12-month price target to $71.87, or a 24% upside. Rogers currently has 14 analysts covering the stock, with 3 analysts having strong buys, 9 having buy ratings and 2 have hold ratings. The street high sits at $80 from Scotia Bank while the lowest sits at $64.
In a note, BMO Capital Markets lowered their 12-month price target to $68 from $72, saying, “We continue to believe the Shaw transaction will close in Q2/22. The information most certainly complicates the integration process and the long-term management of the company.”
They additionally say that the frustration from the directors and family members is understandable as they continue to be concerned about the performance of the company’s wireless business since Staffieri and Mr. Natale came onto the C-suite.
BMO says that the timing and nature of the departure is “obviously a concern,” and that the optics of the Chairman and Board moving against the sitting CEO while in the midst of a large M&A transaction “is a more
meaningful and longer-term concern.”
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.