The Financial Post reports in its Friday edition Citi Research likes Canadian large-cap telcos better than their U.S. peers. The Post's Jonathan Ratner, writing in Trading Desk, says analyst Kevin Toomey initiated coverage of the sector with buy ratings on Telus and BCE, and a neutral rating on Rogers Communications. Mr. Toomey forecasts compound annual revenue growth of about 2 per cent for the Canadian telecoms versus less than 1 per cent for the U.S. group. He attributes this to a better industry structure in Canada, lower mobile device penetration, deep wireless spectrum holdings, less secular pressures on wireline and favourable demographics due to a wealthier population growing at an above-average pace. "Valuations of the Canadian communication stocks have risen over the past month, but we believe there is still room for upside as these Canadian stocks deserve a premium valuation to the broader average of Telco & Cable stocks," Mr. Toomey said in a note. He recommended buying BCE, calling it an "out-of-consensus" name partly due to the prospects for improving wireless performance and acquisition-related synergies. He also expects above-estimate earnings per share for 2015 and 2016 from BCE.