Cogeco (TSE:CGO) Lowered to "Hold" Rating by TD Securities

Key Points

• TD Securities downgraded Cogeco from "buy" to "hold" and cut its price target from C$120 to C$85, a reduction that still implies roughly a 22% upside from the prior close.
• The shares fell 9.2% to C$69.55 on Thursday with volume (~75,070) well above average, putting the stock nearer its 52-week low than its high.
• Key fundamentals show low liquidity and high leverage — quick ratio 0.51, current ratio 0.44 and debt-to-equity 540.51 — alongside a PE of 8.05 and quarterly EPS of C$3.00 on C$735.6M revenue.

Cogeco (TSE:CGO - Get Free Report) was downgraded by research analysts at TD Securities from a "buy" rating to a "hold" rating in a research note issued on Thursday,BayStreet.CA reports. They currently have a C$85.00 price objective on the stock, down from their previous price objective of C$120.00. TD Securities' price objective would indicate a potential upside of 22.21% from the company's previous close.

Separately, Canadian Imperial Bank of Commerce boosted their price objective on Cogeco from C$61.00 to C$66.00 in a report on Friday, January 16th. One equities research analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of C$75.50.

Cogeco Stock Down 9.2%

TSE:CGO traded down C$7.06 on Thursday, hitting C$69.55. The stock had a trading volume of 75,070 shares, compared to its average volume of 27,323. The company has a quick ratio of 0.51, a current ratio of 0.44 and a debt-to-equity ratio of 540.51. Cogeco has a 52 week low of C$53.41 and a 52 week high of C$77.04. The business's fifty day moving average is C$71.61 and its 200 day moving average is C$65.37. The company has a market cap of C$658.50 million, a PE ratio of 8.05, a P/E/G ratio of -0.28 and a beta of 0.82.

Cogeco (TSE:CGO - Get Free Report) last released its quarterly earnings data on Wednesday, January 14th. The company reported C$3.00 EPS for the quarter. Cogeco had a return on equity of 9.61% and a net margin of 2.80%.The firm had revenue of C$735.64 million during the quarter. On average, equities research analysts expect that Cogeco will post 11.054717 EPS for the current fiscal year.

Cogeco Company Profile

Cogeco Inc is a telecommunications company. The company has two reportable operating segments, namely Canadian broadband services and American broadband services. The Canadian and American broadband services segments provide a wide range of Internet, video, and telephony services primarily to residential customers, as well as business services across their coverage areas. The Canadian broadband services activities are carried out by Cogeco Connexion in the provinces of Quebec and Ontario and the American broadband services activities are carried out by Atlantic Broadband in 12 states.

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