TD Downgrades... Rogers Communications Stock Plummets 8%

Rogers Communications Inc. (RCI) shares plunged 7.86% to close at $35.14 on the New York Stock Exchange on April 2, erasing roughly $1.1 billion (₩1.7 trillion) in market value in a single session. Although trading volume of 1.43 million shares fell below the 90-day average, the company’s market capitalization slid to about $15 billion (₩23 trillion).

Analysts point to TD Securities’ decision that day to downgrade Rogers, alongside BCE and Telus, from “Buy” to “Hold,” characterizing the Canadian wireless carriers’ rate-cutting battle as a “race to the bottom” as the direct catalyst. Weiss Ratings and other research firms note that, ahead of Rogers’ first-quarter earnings report scheduled for April 22, investors are increasingly wary of margin pressures and are tilting toward selling.

Rogers Communications is a leading Canadian telecommunications, cable and media conglomerate that reported approximately $20.6 billion in revenue for 2024 and trades on both the Toronto and New York stock exchanges. After strengthening its nationwide network through the acquisition of Shaw Communications, the company has shouldered substantial debt and regulatory risks. As a result, concerns over a prolonged pricing war are hitting its valuation hard, leaving a significant discount.