Section1: Company Overview and Fundamental Insights:

1.1 Company Overview:

Cogeco Communications Inc. (TSX: CCA) is a communication corporation. The company is a cable operator in North America operating in Canada. It provides residential and business customers with internet, video, and telephony services with broadband fiber networks. 

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders have been highlighted in the Pie chart below, which forms around 53.43% of the total shareholding. Rogers Communications Inc and Mackenzie Financial Corporation hold the company's maximum interests at 34.93% and 6.93%, respectively. The company's institutional ownership stood at 26.96%, while the strategic entities ownership stands at 23.38%. Higher institutional holding boosts the confidence in the mind of retail investors.

1.4 Key Metrics:

For Q1 2022, the company posted robust financials clocking healthy growth in revenue, Adjusted EBITDA as well as in profit. Furthermore, it witnessed higher cash from operations and free cash flows, which are the key positives.

The company is gaining traction under its operating matrix compared to an industry median, demonstrating its strength and adaptability.

Section2:  Financial Highlights:

2.1 Insights of Q2 FY2022

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference data in this report has been partly sourced from REFINITIV

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

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