Will Cogeco Sell its U.S. Cable Assets; and Total Company PMV

Research evidence excerpt

Will Cogeco Sell its U.S. Cable Assets; and Total Company PMV

Communications

Cogeco Communications Inc.

TD SECURITIES INC. - CANADA COMPANY UPDATE

June 19, 2026

Price: C$62.74 (06/18/2026) Will Cogeco Sell its U.S. Cable Assets; and

Price Target: C$83.00 Total Company PMV

BUY (1)

ESG SCORE: 61/100

Vince Valentini, CFA^ THE TD COWEN INSIGHT

416 944 7012

The non-cash write-down of Breezeline has stimulated questions from investors about the

vince.valentini@tdsecurities.com

future intentions for this U.S. cable business. In two notable instances in the past (Portugal

Natale Puccia, CFA^ cable and Peer1 data centres), Cogeco fully divested the struggling operations within a

416 983 6399 reasonably short period of time after writing down the book value (details on these events in

natale.puccia@tdsecurities.com

the note).

Carter Sullivan, CPA^

416 983 3954 Impact: NEUTRAL

carter.sullivan@tdsecurities.com

We know that CCA explored the sale of some of its U.S. cable systems in H1/25, with no deal

Key Data consummated seemingly owing to bids being below the level management wanted (we

Symbol TSX: CCA-T

believe it was looking for 7x EBITDA or more). We have no knowledge of an active sale process

12-Month Div (Est.): C$4.09 today, but we believe the write-down has increased the probability that CCA will consider

Beta: 0.67 strategic options and perhaps a full exit of the U.S. business in the next 12–24 months. Cable

12-Month Total

38.8% assets are out of favour in the U.S., but existing cablecos could still have an interest in theReturn:

52-Week Range: C$76.79-C$61.33 scale and cost synergies of acquiring a smaller player, especially if we are talking about

Market Cap: C$2.7B multiples below 5x EBITDA (well below the long-term averages, and even below the recent Cox