11:28 AM EDT, 10/22/2025 (MT Newswires) -- RBC Capital Markets in a Tuesday note said it sees limited potential for meaningful sector-wide multiple expansion in Canadian telecommunications services.

Therefore, the bank puts greater emphasis on net asset value growth and any company-specific re-rating catalysts that can drive total returns for investors.

"We believe the Canadian telecom sector is now beyond the trough with respect to pricing, growth,

valuations and sentiment," RBC said. "While a new competitive equilibrium leaves us more constructive on the sector, until new value propositions emerge and scale to create meaningful new revenue streams for the industry, we expect revenue headwinds (competition, maturity, substitution, macro) to persist."

RBC notes its Outperform-rated stocks are Rogers (RCI-B.TO), BCE (BCE.TO) and Telus ( TU ) . The bank expects Rogers, Telus ( TU ) and Quebecor (QBR-B.TO, QBR-A.TO) to deliver positive low-single digit underlying revenue growth.

Quebecor is expected to lead on wireless net additions at 115,000 and network revenue growth at 6.1%. Rogers is projected to keep pace with BCE and Telus ( TU ) on Internet net additions, while Cogeco (CCA.TO) is expected to see another mixed quarter even as ongoing U.S. headwinds potentially stabilize.

Price: 52.05, Change: +0.14, Percent Change: +0.27