BECEF - Shaw Communications: EBITDA Growth Will Continue Despite The Outbreak Of COVID-19
Investment Thesis
Shaw Communications (SJR) delivered a solid Q3 F2020 as the company's EBITDA increased by over 15% year over year. We see several catalysts that may drive its share price higher in the next 1-2 years. These include: 1) a decline in competition in its wireline Internet business, 2) new wireless customers migrate from its competitors to its economy plans in the current recessionary environment, and 3) better sales in Q4 F2020 due to back-to-school season. Shaw currently pays a 4.9%-yielding dividend and is trading at a valuation below its peers. Therefore, we think