How might this transaction influence analyst earnings forecasts and target price revisions for RCI?

The sale of Rogers’ non‑core data‑centre portfolio will be treated by sell‑side analysts as a one‑off, cash‑rich transaction that lifts near‑term earnings and free cash flow while stripping out a modest slice of recurring revenue. Because the deal is a definitive agreement, most equity research houses will start to add the net gain (less any transaction costs) to Q3‑Q4 earnings estimates, typically bumping the FY2025 EPS guidance by 3‑5 % (depending on the disclosed price‑per‑unit). At the same time, analysts will trim the forward‑looking growth component of the data‑centre segment, which has historically contributed ~2 % of total revenue growth, so the long‑term earnings runway may be slightly muted. The net effect is usually a target‑price upgrade of 2‑4 %, with some firms moving the valuation from a modest discount to a slight premium to the 12‑month moving average, especially given the positive sentiment (score 15) and the company’s continued exposure to its core connectivity business.

From a technical standpoint, RCI has been trading just below its 50‑day SMA and near a bullish flag formed after the earnings beat earlier this year. The transaction news is likely to trigger increased volume and a break above the $46‑$48 resistance zone, providing a short‑term entry point for momentum traders. However, the price may retrace to the 20‑day SMA (~$45) as the market digests the mixed earnings‑growth outlook, creating a potential buy‑the‑dip opportunity for longer‑term investors who expect the cash proceeds to be redeployed into higher‑return fiber‑optic expansions or dividend enhancements. In practice, a prudent trade would be to wait for the post‑announcement earnings revision (typically released within the next 1‑2 weeks) and then position either long (if target revisions stay upbeat) or neutral (if analysts downgrade growth expectations).