TD Cowen raised its 12-month target price on Quebecor Inc. to C$55 from C$52, reflecting stronger share price momentum and rising confidence in the company’s ability to deliver a recovery in mobile average revenue per user (ARPU) growth over the coming quarters. Analysts noted that Quebecor’s recent financial results and subscriber data suggest that its wireless business is stabilizing following a period of heightened competitive pressure, particularly in Ontario and Western Canada, where the company has expanded its Freedom Mobile footprint.
TD highlighted that Quebecor’s disciplined pricing strategy, efficient cost management, and operational synergies from the Freedom acquisition continue to drive margin improvement across its telecommunications segment. In addition, the company’s growing scale in mobile services is expected to enhance profitability as subscriber churn remains low and ARPU trends gradually improve.
TD Cowen also cited rising free cash flow generation and continued debt reduction as key factors supporting valuation upside. With the company’s dividend growth outlook intact and a track record of strong capital allocation, analysts believe Quebecor remains one of the most attractive income and growth plays in the Canadian telecom space.
Looking ahead, the firm anticipates that further 5G rollout and digital service expansion will provide incremental revenue opportunities, while regulatory clarity around spectrum access and pricing could enhance investor visibility. TD Cowen’s valuation increase reflects a more optimistic view of Quebecor’s earnings trajectory, supported by its competitive positioning, improving wireless metrics, and strong execution in an evolving telecom landscape.
