11:48 AM EDT, 10/29/2025 (MT Newswires) -- RBC Capital recommends riding out the current choppy environment in the diversified media space with higher quality names with respect to earnings resilience and/or balance sheets and FCF.

Best ideas are Cineplex ( CPXGF ) , Transcontinental (TCL-A.TO) and Stingray (RAY-B.TO).

Most Canadian media stocks continue to underperform the broader market in 2025, which RBC attributes to both cyclical and structural headwinds despite the avoidance of worst-case tariff and economic scenarios and a relative degree of resilience in advertising spend.

RBC would not be surprised to see some further softness in the Canadian advertising market as the second-half progresses, on lingering tariff-induced uncertainty and advertising budgets. "Having said this, we are cautiously optimistic on a better backdrop emerging in 2026 should real GDP growth in North America re-accelerate consistent with RBC Economics' forecasts."

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

Stingray is rated Outperform, price target raised to $14, from $13.

Transcontinental rated Outperform, with a $26 price target.

Price: 12.50, Change: -0.04, Percent Change: -0.32