Rogers Earnings: Nice Progress on Shaw Cost Synergies While Sales Drivers Are Mixed

Rogers continues to realize the cost savings from its Shaw acquisition ahead of schedule, executing well toward what we think is the most critical component of that transaction. From a sales standpoint, we haven't yet seen evidence that Shaw's footprint has changed anything, and the fourth quarter had areas of both encouragement and concern. As we project only meager sales growth throughout our forecast, the results don't alter our view. We are maintaining our CAD 78 fair value estimate and believe shares are undervalued.