Canaccord tabs Shaw as 'next takeover candidate'

David Lambert, analyst at Canaccord Adams Inc., believes Shaw Communications Inc. "could be the next takeover candidate" in Canada's consolidating communications sector. The Calgary cable giant's operating momentum and strategic position in Alberta and British Columbia could cause Rogers Communications Inc. or a private equity fund to bite, Mr. Lambert said in a note.

Canaccord has a "buy" rating on Shaw's class B shares with the stock price target under review as the brokerage assesses the company's value in the event of a takeover.

Shaw reports second-quarter results this morning. It is locked in a heated battle with Vancouver's Telus Corp. for market share as they continue to encroach on the other's traditional turf. Analysts like Shaw's odds and forecast a profit of 33 cents a share, up from 21 cents.

In trading on the Toronto Stock Exchange, Shaw's class B shares rose 86 cents to $44.90 yesterday.