Rogers (TSX:RCI.B): Revisiting Valuation After New Amazon Luna Tie-Up, Satellite Launch and 5G Expansion

Rogers Communications (TSX:RCI.B) has been busy, rolling out Amazon Luna on its Xfinity platform, launching Rogers Satellite for off grid connectivity, and lighting up more 5G sites across eastern Ontario, so investors are reassessing the stock.

See our latest analysis for Rogers Communications.

These product launches and network upgrades are landing against a mixed backdrop, with the share price at $50.51 and a solid year to date share price return of 15.40%, but a weaker three year total shareholder return of minus 7.45%, suggesting long term holders are still waiting for sustained momentum to rebuild.

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With new products ramping up and the stock trading about 18% below analyst targets, investors now face a key question: Is Rogers undervalued after years of lagging returns, or is the market already pricing in its next leg of growth?

Most Popular Narrative: 15% Undervalued

With Rogers Communications last closing at CA$50.51 and the most followed fair value sitting at about CA$59.46, the narrative leans toward meaningful upside if its long term growth plan plays out.

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, supporting both subscriber additions and higher margins in future periods.

Read the complete narrative.

If you want to see what really underpins that higher fair value, and why future margins and earnings power are central to the story, dig into the full narrative to see which growth levers, profitability shifts, and valuation multiple moves are doing the heavy lifting.

Result: Fair Value of $59.46 (UNDERVALUED)

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

However, regulatory intervention on wholesale access and stubborn ARPU pressure from aggressive promotions could derail the margin and earnings ramp embedded in today’s valuation.

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

Build Your Own Rogers Communications Narrative

If this outlook does not fully align with your view, or you would rather dig into the numbers yourself, you can build a tailored narrative in just a few minutes, 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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