Telus International downgraded to Neutral from Buy at Citi

Citi downgraded Telus International to Neutral from Buy with a price target of $15, down from $24. The analyst continues to like the company’s pivot into end-markets that have longer-term growth potential. However, following last night’s negative preannouncement, the firm believes Telus International shares will remain range-bound pending indications of improving visibility and growth. Citi cut estimates due to the pre-announced miss, lower client volumes, elongated client decision-making, a reduced expected inorganic contribution from WillowTree, and reduced operating leverage.