Cogeco Communications (CCA CN) Canada
Communications
The case for a major comeback - already disappointed that Rogers didn’t take CCA out, the market is terrified management will embark on a long, expensive wireless network build-out. Veritas do not believe that this will be the case. Shaw and Quebecor have already proven how expensive it is even to try, and there are better ways to build out a wireless business without destroying $1bn+ in capital. CCA’s shares are discounted by 2-5 turns of EBITDA vs. peers. CCA only needs to be rational with its wireless expansion for shareholders to reap attractive returns - a very low hurdle. TP C$130 (60% upside).
Edition: 128
- 04 February, 2022