Shaw Communications "outperform," target price reduced

06/30/08 - RBC Capital Markets

NEW YORK, June 30 (newratings.com) - Analysts at RBC Capital Markets maintain their "outperform" rating on Shaw Communications Inc (SWC), while revising their estimates for the company. The target price has been reduced from C$31 to C$27.

In a research note published this morning, the analysts mention that the company has posted its F3Q08 EPS ahead of the estimates, aided by improved cable ARPUs. Shaw Communications has raised its dividend from C$0.72 to C$0.80. The downward revision in the target price reflects increased taxes and upfront wireless capex, the analysts say. The adjusted EPS estimate for 2008 has been raised from C$1.06 to C$1.11 and the adjusted EPS estimate for 2009 has been reduced from C$1.33 to C$1.29.