Telus International downgraded to Sector Perform from Outperform at Scotiabank

Scotiabank analyst Divya Goyal downgraded Telus International to Sector Perform from Outperform with a price target of $26, down from $33. The company’s financial performance was softer than expected in Q3, and while Goyal expected some level of softness for Q3 revenue, the analyst did not anticipate a 3.5% drop in revenue as compared to the firm’s estimates, she tells investors in a research note. Goyal expects further slowdown in y/y growth across the company’s client base, as well as some softness in its growth trajectory over the next few quarters given the macroeconomic uncertainty and FX headwinds.