Analysts’ Recommendations for Cogeco, Cineplex, and Barrick Gold: A Guide to Potential Price Movements

2023-07-17 18:17:17

Cogeco’s third-quarter revenue was $742 million, as predicted by analyst consensus. (Photo: lesaffaires.com)

What to do with titles from Cogeco, Cineplex and Barrick Gold? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from that expressed by the analysts.

Cogeco (CCA, $68.43): US operations remain weak spot

The firm, which offers ultra-fast Internet, flexible television and residential telephony services, all powered by fiber, disclosed Friday results for its third quarter of 2023 relatively in line with expectations.

Jerome Dubreuil, analyst at Desjardins Securities, notes that the number of subscribers in Canada exceeded forecasts, but that it was the opposite in the United States, while the resumption of operations in Ohio is slower than expected.

In the wireless sector, management said it had entered into negotiations to access a mobile virtual network operator (MVNO). The firm has also made a new investment in this sector by purchasing wireless spectrum in Quebec for an amount of 60 million dollars (M$).

Third-quarter revenue was $742 million, as expected by analyst consensus. The same goes for adjusted earnings before interest, taxes and amortization (EBITDA) at $351 million, notes the analyst.

Free cash flow reached $104 million, similar to the same period last year, but above consensus expectations of $77 million. The difference is attributable, among other things, to capital expenditures that were $12 million lower than forecast.

Following this quarter, management maintains its guidance for the full year 2023. However, it stresses that it must face some headwinds, including higher inflation and interest rates, as well as stronger competition.

The Desjardins Securities analyst recommends buying the stock for a target price of $83.

Cineplex (CGX, $9.25): It will have to deal with the actors’ strike

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