Cogeco stock too cheap to ignore with high cash flow - Canaccord Genuity

TORONTO - Cogeco, despite losing 2,076 net Canadian basic cable subscribers, and adding only 6,311 telephony subscribers, well below the 16,000 forecast in its first quarter, remains a “buy” recommendation. In part because of its strong Free Cash Flow (FCF) guidance that increased to $170 million from $105 million due to its purchase of Atlantic Broadband (ABB) and reduced Canadian capex. This according to analysts Dvai Ghose and Sanford Lee in Canaccord Genuity’s Daily Letter for January 15 who now forecast a target price of $44.00 for Cogeco’s stock. “Due to weaker than expected subscriber results, at $328 million, revenue...