CIBC World Markets Inc. raised its EPS estimates on Quebecor Inc. (TSX:QBR_B.TO) after the media company's Videotron unit posted quarterly results.
"Quebecor subsidiary Videotron reported standalone Q4 results which were solidly in line with our estimates with cable sub stats that were ahead. The VDO release came ahead of a bond refinancing that was upsized to US$800 million given strong demand, priced at a 5% yield," CIBC said.
The key driver for value at QBR remains Videotron, and the fourth-quarter results bode well for the unit, it added.
"Given a maturing cable industry, results were solid across the board. We are also seeing good bundling pull through from VDO's wireless offering," CIBC wrote.
The brokerage, which reiterated its "Sector Outperformer" rating and price target of $41 on the stock, increased its 2012 EPS estimates to $3.40 from $3.25.
On Thursday, the stock is trading at $36.24, up 0.14%.