UPDATE: Bank of America Upgrades Rogers Communications to Buy on Positive Outlook

In a report published Friday, Bank of America analyst Glen Campbell upgraded the rating on Rogers Communications RCI from Neutral to Buy, but lowered the price target from $48.00 to $44.25. In the report, Bank of America noted, “We are upgrading RCI to Buy after 1) a steep share price decline (-10% since the June 26 story about a likely Verizon entry to Canada and 21% since its April peak) 2) rate hikes by all three incumbent wireless operators (signaling improved market discipline, discussed in our July 23 note); and 3) our valuations under different competitive scenarios. If Verizon pursues a broad and aggressive entry, we see Rogers as uniquely positioned to strike a Verizon network-sharing or roaming deal (worth perhaps $4/share, a potential value hedge). 2Q13 results were in line. We do expect above-consensus-EBITDA in 2013/14 (on reduced handset subsidy expense).” Rogers Communications closed on Thursday at $40.33.