The Globe and Mail reports in its Wednesday, July 10, edition that Canaccord Genuity analyst Aravinda Galappatthige cut his price targets on the three big Canadian telecoms heading into the second quarter earnings season, with Rogers Communications taking the biggest hit. The Globe's Darcy Keith writes in the Eye On Equities column that Canadian telecoms are down 15 per cent so far this year on a total return basis, a terrible performance considering the S&P/TSX Composite Index is up 5 per cent over that same period. The sector is also sharply underperforming other yield-oriented sectors, which Canaccord notes suggests "this is much more than an interest rate problem." Mr. Galappatthige says the sharper cut to Rogers "is due to proportionate downward adjustments to target multiples having a greater impact on equity value owing to the higher debt load." Nevertheless, he thinks a compelling buying opportunity exists in the sector. He cut his share target on Rogers to $59 from $71, BCE to $50 from $53 and Telus to $23 from $25. Mr. Galappatthige says in a note, "While there are clearly near-term risks, we have opted to remain constructive on the sector with 'buy' ratings on BCE, Rogers [and] Telus."