Goldman Sachs Adds Rogers To Its ‘Conviction Sell’ List

by Gaurav Kheterpal on February 3, 2010

Rogers Wireless - Tough Times Ahead?

Rogers Wireless - Tough Times Ahead?

Goldman Sachs has added Rogers Wireless to its ‘Conviction Sell’ List yesterday morning.  In another move, the company has removed Qwest from its ‘Conviction Sell’ list and kept it at a ‘Sell’ rating. Analysts at Goldman Sachs Group believe that Rogers Wireless (RCI) will see slow growth for the foreseeable future.

The move is influenced by the stiff competition in the Canadian telecom market with strong competitors like Telus and BCE. Though WIND Mobile may be a new carrier, it has set the alarm bells ringing for other carriers and is considered as a threat by all major players.

Rogers has already announced that it will cut 3 percent of its workforce – nearly 900 jobs in order to reduce costs and consolidate its operations. There is no doubt that the carrier is feeling the heat of the competition and it needs a serious transformation in order to put up a good showing against other carriers. Goldman Sachs analyst Jason Armstrong mentions


“RCI is a high quality company with a talented management team, along with a strong focus on cost structure and capital allocation, the flip side is that this is in response to slowing growth, which we believe will continue for the foreseeable future, and a risk profile which has increased due to a host of competitive threat.”

Rogers stocks fell 77 cents (2.4%) and ended the day at $30.87.

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Written by: Gaurav Kheterpal. www.digitcom.ca. Follow TheTelecomBlog.com by: RSSTwitter,Identi.ca, or Friendfeed

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