Telus downgraded at Scotiabank amid increased scrutiny on multiple

As previously reported, Scotiabank downgraded Telus to Sector Perform from Outperform with a price target of C$26, down from C$28. While the firm still believes that Telus should outgrow most Canadian telcos over the next few years, it also believes the stock’s premium multiple will likely come under increased scrutiny as the sector faces increasing ARPU pressure both in wireless and wireline, the analyst tells investors. Recent acquisitions by Telus in the Health and IT services segments have increased leverage “without a commensurate bump in overall revenue growth,” the analyst added.