Q: What is your overall view of Cogeco for growth in the next 3 to 5 years. Thanks.
5i Research Answer:
At 9x earnings, we believe CCA has good upside potential from here. Historically it has always traded to its much larger peers T and BCE, however, today the valuations have diverged significantly. We would prefer its peers overall for long-term growth and dividends (much higher than CCA). However, we think shares could see good upside from here. CCA has decent growth potential as well with its acquisitions in recent years. Shares are falling with other telcos so we would wait for the sector to settle before buying shares.