Barclays has downgraded Rogers to “Equal Weight” and Bell to “Underweight,” citing ongoing challenges in Canada’s telecom sector, including price wars and slowing growth.
“The Canadian telecom operating environment may continue to see headwinds for a while and stretched balance sheets leave little room for error,” Barclays wrote.
The report highlighted aggressive pricing by Rogers and Quebecor following the Rogers-Shaw merger, forcing rivals Bell and Telus to cut prices on wireless and internet and vice versa. Combined with slower immigration—historically a key growth driver—this has created a vulnerable market.
Barclays also flagged concerns about high debt, unsustainable dividend payouts, and distractions from unrelated mergers and acquisitions. Despite the recent sell-offs, Canadian teleco stocks still trade at a premium compared to U.S. peers, which are slower-growing.
Shares of Rogers are trading at $40.40, down 37% in the past year. Telus is trading at $20.38 per share, down nearly 17% in the past year. Bell’s parent BCE is trading at $23.22 per share, down 43% for the year. Looks like it’s been pain all around for the ‘Big 3’. With US President Donald Trump saying 25% tariffs are going to soon apply to Canada, the economic outlook is not good for Canadians if those go through.
Barclays warned of continued risks for the telecom sector, suggesting challenges are far from over.
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Price wars? Where?
In corporate propaganda