Telus International downgraded to Underperform from Buy at BofA

BofA analyst Cassie Chan downgraded Telus International to Underperform from Buy with a price target of $4, down from $11, after the company reported Q2 results that significantly missed expectations while cutting FY24 revenue and EPS guidance by 7.5% and 56%, respectively. Given ongoing macro softness and ongoing revenue decline in its clients outside the top two, the firm believes the company is losing visibility and that it could take time for a “material and sustainable re-acceleration in top-line growth,” the analyst tells investors.