12:39 PM EDT, 07/24/2024 (MT Newswires) -- In its second quarter preview of Canadian Media companies, RBC writes that, "at current valuations, we continue to see attractive entry points for most stocks in our broader media coverage provided the ongoing improvement in advertising and operating environments continues and an economic hard landing is avoided."

RBC's best ideas are VerticalScope ( VFORF ) , Cineplex ( CPXGF ) and Transcontinental (TCL-A.TO).

Advertising-wise, RBC believes visibility around the strength and sustainability of any recovery remains somewhat limited reflecting a still choppy Canadian advertising market against the backdrop of lingering economic uncertainty. However, RBC's expectation for a "modest" cyclical recovery remains intact along with continued structural headwinds facing television and radio and ongoing growth in digital revenues by all Canadian media companies. In June 2024, Magna (MG.TO) upwardly revised its forecast for U.S. advertising spend from +9.2% YoY growth in March to +10.7% in part driven by a stronger first quarter (+12% growth).

Content-wise, RBC believes the recovery post-U.S. guild strikes in 2023 remains subdued with only modest YoY growth in content spend expected for 2024 but with the recovery strengthening in 2025.

Price: 8.94, Change: +0.01, Percent Change: +0.11