TD Securities Lifts Rogers (RCI) Rating to Buy on Stronger Free Cash Flow Outlook

Rogers Communications Inc. (NYSE:RCI) is included among the 10 Canadian Stocks with Highest Dividends.

TD Securities Lifts Rogers (RCI) Rating to Buy on Stronger Free Cash Flow Outlook

Photo by Dan Dennis on Unsplash

On April 23, TD Securities upgraded Rogers Communications Inc. (NYSE:RCI) to Buy from Hold. It also lifted its price target to C$60 from C$56. The call leans heavily on the company’s “much lower” capex outlook, which is expected to support stronger free cash flow and earnings. The analyst also pointed to improving confidence in wireless pricing, along with better visibility on how Rogers can monetize its sports assets.

A day earlier, on April 22, Reuters reported that Rogers now expects 2026 capital spending to come in roughly 30% below 2025 levels. The company is tightening its budget as pricing pressure across the industry remains intense. Competition in Canada’s telecom market has picked up, and against that backdrop, Rogers lowered its 2026 capex forecast to a range of C$2.5 billion to C$2.7 billion, citing softer growth expectations.

Rogers is also moving ahead with its plan to acquire the remaining 25% stake in MLSE, with the deal expected to close in the second half of the year. Once completed, the company plans to group its sports, media, and entertainment assets under a single structure valued at more than $25 billion. It also intends to bring in outside investors by selling a minority stake. In the first quarter, Rogers added 28,000 postpaid wireless subscribers.

Rogers Communications Inc. (NYSE:RCI) operates as a diversified communications and media company in Canada. Its business is split across Wireless, Cable, and Media. The wireless segment serves both consumers and businesses with telecom services.

While we acknowledge the risk and potential of RCI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RCI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Food Stocks with Highest Dividends and 10 Best Dividend Aristocrat Stocks to Buy in 2026

Disclosure: None. Follow Insider Monkey on Google News.