Telus International price target lowered to $11 from $14 at RBC Capital

RBC Capital analyst Daniel Perlin lowered the firm’s price target on Telus International to $11 from $14 but keeps an Outperform rating on the shares after its Q3 earnings miss and below-consensus guidance. The company’s #3 client continues to pull back on spending and thus weighing on aggregate results, though its FY23 revenue guidance does imply some expected sequential improvement in Q4, the analyst tells investors in a research note. RBC adds however that the macro backdrop remains challenging and thus elongated cycles persist, setting up for a more conservative FY24.