12:39 PM EDT, 07/28/2025 (MT Newswires) -- Advertising proved resilient in the second quarter relative to most of the more negative tariff-induced scenarios exiting the first quarter, writes RBC. With the focus shifting to potential tariff impacts in the second half of this year, RBC continues to recommend riding out the current volatility in the higher quality names with respect to earnings resilience and/or balance sheets and free cash flow.

Best ideas are Cineplex ( CPXGF ), Transcontinental and Stingray.

For the majority of companies in RBC's diversified media coverage, tariff impact is indirect in the form of a more challenging operating environment with respect to a likely slowdown in economic growth and/or higher inflation. In Q2/25, RBC expects most of the diversified media companies with advertising exposure to experience some softness driven by the impact of tariff-induced uncertainty on advertisers and advertising spend. "Having said this, we believe advertising overall has demonstrated reasonable resilience relative to what were most of the more negative tariff induced scenarios exiting Q1/25."

Key ratings:

Thomson Reuters target raised to US$215 (from US$185). Maintain Sector Perform.

Cineplex ( CPXGF ) is rated Outperform, with a $14 target.

Stingray is rated Outperform, with a $13 target.

Transcontinental is rated Outperform, with a $25 target.

Price: 11.06, Change: -0.29, Percent Change: -2.56