Zacks Investment Research Upgrades Shaw Communications Inc. (SJR) to Strong-Buy
Shaw Communications Inc. (NYSE:SJR) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report released on Monday. The firm presently has a $23.00 target price on the stock. Zacks Investment Research’s target price suggests a potential upside of 15.52% from the company’s current price.
According to Zacks, “Shaw Communications’ recent divestiture of its subsidiary Shaw Media Inc. to Corus Entertainment Inc., places Shaw Communications as a pure-play Canadian telecom company with a solid growth profile. Further, venture into the Canadian wireless market will be beneficial for it. The company’s recent launch of mobile TV platform – FreeRange TV and its SmartWiFi and SmartSecurity Services should gain traction. The company is also launching high speed internet services and is entering into tie-ups to boost cloud suit. However, competitive wireless market, considerable debt, escalating capital expenditure, deteriorating cash position, rolling out of new brands and advertising promotion is likely to escalate expenses going ahead and may act as headwinds. “
A number of other brokerages have also recently issued reports on SJR. TD Securities reissued a “buy” rating and issued a $28.00 price objective on shares of Shaw Communications in a research note on Thursday, June 30th. Bank of America Corp. began coverage on shares of Shaw Communications in a research note on Tuesday, July 5th. They issued an “underperform” rating on the stock. Scotiabank reissued an “outperform” rating and issued a $30.00 price objective (up from $29.00) on shares of Shaw Communications in a research note on Thursday, July 7th. National Bank Financial raised shares of Shaw Communications from a “sector perform” rating to an “outperform” rating and lifted their price objective for the company from $24.50 to $27.00 in a research note on Monday, July 11th. Finally, Canaccord Genuity reissued a “hold” rating and issued a $24.00 price objective (down from $25.00) on shares of Shaw Communications in a research note on Friday, July 15th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and six have given a buy rating to the stock. Shaw Communications presently has an average rating of “Hold” and a consensus price target of $25.56.
Shares of Shaw Communications (NYSE:SJR) opened at 19.91 on Monday. Shaw Communications has a 12 month low of $15.66 and a 12 month high of $21.41. The firm’s 50 day moving average is $20.14 and its 200 day moving average is $19.29. The company has a market cap of $9.63 billion, a PE ratio of 9.46 and a beta of 0.85.
Shaw Communications (NYSE:SJR) last announced its earnings results on Friday, July 15th. The company reported $0.11 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.35 by $0.24. Shaw Communications had a return on equity of 12.21% and a net margin of 26.04%. The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the prior year, the business posted $0.42 earnings per share. The firm’s revenue for the quarter was up 13.0% compared to the same quarter last year. On average, equities analysts predict that Shaw Communications will post $0.87 earnings per share for the current year.
The firm also recently declared a sep 16 dividend, which will be paid on Thursday, September 29th. Stockholders of record on Thursday, September 15th will be issued a dividend of $0.0988 per share. The ex-dividend date of this dividend is Tuesday, September 13th. Shaw Communications’s dividend payout ratio (DPR) is presently 43.33%.
Several institutional investors have recently modified their holdings of the company. Canada Pension Plan Investment Board raised its position in shares of Shaw Communications by 0.4% in the first quarter. Canada Pension Plan Investment Board now owns 7,272 shares of the company’s stock worth $141,000 after buying an additional 28 shares during the period. US Bancorp DE raised its position in Shaw Communications by 63.4% in the second quarter. US Bancorp DE now owns 7,867 shares of the company’s stock valued at $151,000 after buying an additional 3,053 shares during the last quarter. Cubist Systematic Strategies LLC purchased a new position in Shaw Communications during the second quarter valued at about $216,000. Eqis Capital Management Inc. purchased a new position in Shaw Communications during the second quarter valued at about $218,000. Finally, Caisse DE Depot ET Placement DU Quebec purchased a new position in Shaw Communications during the second quarter valued at about $266,000. Institutional investors own 51.85% of the company’s stock.
Shaw Communications Company Profile
Shaw Communications Inc (Shaw) is a communication company. The Company’s operating segments are Consumer, Business Network Services, Business Infrastructure Services and Media. The Consumer division provides cable telecommunications services, including video, Internet, wireless fidelity (WiFi) and digital phone, and satellite video to Canadian consumers.
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