Noah Zivitz

Managing Editor, BNN Bloomberg

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While at least three analysts downgraded their recommendations on Rogers Communications Inc. Monday amid the family feud over the company's board of directors, the country's largest telecom operator still has plenty of bulls on its side.

Of the 15 analysts tracked by Bloomberg, fully two-thirds of them had a buy recommendation on the stock as of Tuesday morning, while the other five are telling clients to hold. The consensus 12-month price target among those 15 analysts is $69.79 -- a level that Rogers shareholders haven't enjoyed since the summer of 2019. 

The company is embroiled in a governance controversy that's pitting Edward Rogers, the son of founder Ted Rogers, against his mother and sisters over who's actually on the company's board of directors. 

After weeks of controversy surrounding a behind-the-scenes power struggle that played out in the media amid a steady stream of leaks, Mr. Rogers was ousted from his role of chairman last week -- only to reclaim that role after he availed himself of his power as chair of the Rogers Control Trust, which holds almost all of the voting shares in the company. 

All of that has played out as Rogers seeks to close its planned $20-billion takeover of Shaw Communications Inc. 

Despite the flurry of developments, and with no clear indication of when the dispute will be resolved, one veteran analyst has urged clients to see the potential ahead once storm clouds pass. 

"Uncertainty is definitely not the friend of corporate stakeholders. Beyond the events of recent days, it's not knowing how many more headlines and days will be required to get to a much needed resolution," said National Bank of Canada Financial Markets analyst Adam Shine in a report to clients.  

"This will surely weigh on the stock which will see some investor turnover given the optics, but these shares are getting more spring-loaded.