In a report released today, Matthew Griffiths from Bank of America Securities reiterated a Hold rating on Telus, with a price target of C$22.00.
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Matthew Griffiths has given his Hold rating due to a combination of factors including Telus’s recent financial performance and market positioning. The company’s third-quarter results were slightly below expectations, with consolidated revenue, adjusted EBITDA, and adjusted EPS missing consensus forecasts. Despite this, Telus maintained its guidance, although it pointed to the lower end of its operating revenue range due to decreased wireless equipment sales.
Griffiths also noted that while Telus is effectively managing the challenging telecom market with a focus on efficiency and bundling, its premium valuation compared to peers suggests that the stock is fairly valued at its current price. Additionally, the company’s emphasis on AI as a growth driver, with expectations for significant revenue increases from AI-related services by 2028, was highlighted. However, given the current market conditions and valuation, a Hold rating is deemed appropriate.
Griffiths covers the Communication Services sector, focusing on stocks such as Rogers Communication, BCE, and Rogers Comm Cl A. According to TipRanks, Griffiths has an average return of 0.2% and a 50.00% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $14.00 price target.