Citi opens ‘negative catalyst watch’ on Telus International into earnings

Citi opened a “90-day negative catalyst watch” on shares of Telus International while keeping a Neutral rating on the name with a $7 price target. The analyst expects Telus to report a sales miss and lower its 2024 revenue outlook. Telus appears to be one of the few IT services companies that is still assuming a second half of 2024 demand recovery after maintaining its outlook last quarter, the analyst tells investors in a research note. Citi would expect a negative stock reaction on this with its “forecasting credibility taking a hit.”