Quebecor Earnings: Long Road Ahead After Freedom Acquisition, but Integration Looks Smooth

Quebecor has a long way to go before it’s a legitimate fourth national wireless competitor. While results are not yet impressive, the firm has already made several strides to improve the Freedom offering within that brand’s footprint. More important, because of the bargain price we believe Quebecor paid, we see the possibility of substantial upside—even assuming Quebecor remains a distant fourth national competitor—with lower risk. After getting our first look at the effect that Freedom has on Quebecor’s financials, we are raising our fair value estimate to CAD 38 from CAD 35.