TD Securities raised its price target on Rogers Communications Inc. (RCI-B.TO) to $60 from $56, and on Quebecor Inc. (QBR-B.TO) to $46 from $44 on Tuesday.

Analyst Vince Valentini maintained a Buy rating on shares of the Canadian telecom companies.

"In recent weeks, wireless industry price competition has become less negative, and not as aggressive as we saw towards the end of Q1/25," Valentini said in a note to clients.

"When we package the encouraging pricing data with our recent analysis on the large percentage of wireless subs that have already re-priced lower in the past two years..., we believe investor sentiment towards the sector is gradually improving, with some hope that ARPU/revenue/ EBITDA estimates for 2026 could start to move higher over the next few months (we first need to see relative discipline on pricing during the critical back-to-school season from mid-August to mid-September)," the analyst said.

"With this potential industry recovery in sight, we believe investors will increasingly shift positioning to Rogers, given both its industry-leading mix of wireless EBITDA... and its sector-low valuation," Valentini said.

The analyst said Cogeco Communications Inc. (CCA.TO) has lagged Quebecor by a wide margin in terms of EV/EBITDA over the past five years.

"Quebecor has better scale, and we believe wireless network assets deserve a premium valuation to both cable and MVNO operations," Valentini said.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)