On the eve of Shaw Communications Inc.'s (NYSE:SJR) third quarter earnings release, Canaccord Adams analyst David Lambert told clients he expects the telecom company to report robust subscribers growth for the first three months of fiscal 2007's second half.
"We estimate the company could add 5,000 basic cable subscribers, 30,000 digital boxes, 25,000 new Internet customers, 60,000 new digital phone customers and 5,000 new direct-to-home satellite TV customers," he wrote.
Mr. Lambert added that the subscriber growth, when combined with price increases implemented in the fourth quarter of last year, could result in revenue growth of 10.3% year over year and earnings before interest, taxes and depreciation growth of 12.2%.
He maintained his "buy" recommendation on the stock and left his 12-month price target of C$55 unchanged.
SJR 1-yr chart: