Stock Analysis

Rogers Communications (TSX:RCI.B): Evaluating Valuation Following Launch of Premium Rogers Xfinity Pro WiFi 7 Service

Rogers Communications (TSX:RCI.B) has just unveiled Rogers Xfinity Pro, its latest premium add-on designed to bring next-level WiFi 7 capabilities and backup connectivity to Canadian homes. The new service promises smarter and more resilient internet experiences for subscribers.

See our latest analysis for Rogers Communications.

It has been a dynamic year for Rogers Communications. The introduction of premium features like Xfinity Pro comes on the back of robust share price performance, with a 19.9% lift so far this year and a strong 12.3% return over the past 90 days. Long-term holders have seen an 8.8% total shareholder return over the past 12 months, suggesting that momentum is picking up as the company sharpens its focus on growth and reliability.

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With shares trading below analyst price targets and new innovations bolstering its consumer offering, the question becomes: does Rogers present a compelling buying opportunity, or has the market already accounted for its future growth?

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Most Popular Narrative: 10.6% Undervalued

Compared to its last close price, Rogers Communications is seen by the most widely followed narrative as trading below fair value. Projected gains are attributed to evolving margins and new service offerings that differentiate the company from its recent history.

The continued deployment and expansion of 5G and Wi-Fi 7 infrastructure, along with the introduction of advanced services like fixed wireless internet and bundled offerings, allows Rogers to capitalize on increasing mobile data consumption and connected device proliferation. This supports both subscriber additions and higher margins in future periods.

Read the complete narrative.

Curious what bold forecasts and margin trends anchor this fair value? The secret sauce lies in a striking mix of profitability leap and ambitious growth assumptions. Are you ready to see which numbers steer this optimistic outlook?

Result: Fair Value of $58.69 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing regulatory uncertainty and intense competitive pressures could challenge Rogers' growth story and influence expectations in the future.

Find out about the key risks to this Rogers Communications narrative.

Build Your Own Rogers Communications Narrative

If you’d like to see the data through your own lens or bring a unique perspective to the table, it takes less than three minutes to construct a narrative that reflects your analysis. Do it your way.

A great starting point for your Rogers Communications research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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