Telus International downgraded to Underweight from Neutral at JPMorgan

JPMorgan analyst Tien-tsin Huang downgraded Telus International to Underweight from Neutral with an unchanged price target of $7. The firm also placed the shares on “Negative Catalyst Watch” until the company’s August 2 earnings date. The analyst sees downside risk to 2024 estimates and guidance given Telus International’s reliance on improvement in the macro despite no signs of a demand recovery. This is not a secular call on generative artificial intelligence, but rather a cyclical one, the analyst tells investors in a research note.