BMO Capital analyst Tim Casey has maintained their bullish stance on TU stock, giving a Buy rating yesterday.
Tim Casey has given his Buy rating due to a combination of factors including Telus’s consistent performance and strategic positioning. Even though Q1 revenue showed a slight decrease of 1%, it was accompanied by a solid 4% increase in adjusted EBITDA, surpassing expectations. Additionally, earnings per share outperformed the consensus estimates, coming in at $0.26 versus the anticipated $0.24. Notably, network revenue grew by 3%, supported by a robust mobile customer acquisition of 45,000 new subscribers, despite a slight decrease in average revenue per user (ARPU). Casey also notes the company’s commitment to enhancing average billing per user (AMPUs) through brand differentiation and reduced reliance on device subsidies.
Furthermore, Casey recognizes Telus’s ability to navigate through competitive markets with its diversified product offerings, as evidenced by strong growth in both internet and video/IPTV subscribers, suggesting effective cross-selling facilitated by Telus’s fiber network and supplementary services. The company’s Technology Solutions (TI) division is also expected to see improved financial performance, with revenue and adjusted EBITDA growth anticipated to pick up in the second half of 2024, backed by restructuring efforts. Moreover, Telus’s proactive management of its subscriber base, its geographical footprint, and its sustainable approach to capital intensity and dividend growth, positions it favorably within the sector. These factors collectively underpin Casey’s positive outlook and the Buy rating assigned to Telus’s stock.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a C$25.00 price target.
TU’s price has also changed slightly for the past six months – from $17.250 to $16.410, which is a -4.87% drop .
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Telus (TU) Company Description:
TELUS Corporation is a telecommunications company that provides a broad range of telecommunications products and services in Canada. It offers wireless, wireline, Internet, communications services for voice and data to consumers and businesses. The company also provides entertainment, healthcare, video, and IPTV television services in the country.
