Telus: Balancing Strategic Initiatives and Market Uncertainty with a Hold Rating

Analyst Matthew Griffiths of Bank of America Securities maintained a Hold rating on Telus (TU – Research Report), retaining the price target of C$22.00.

Matthew Griffiths has given his Hold rating due to a combination of factors related to Telus’s current strategic initiatives and market conditions. Telus is exploring the sale of a minority stake in its wireless tower portfolio, which could potentially bring in significant revenue. However, the lack of a finalized deal and the valuation slightly below international comparisons contribute to the Hold rating.
Additionally, while Telus is pursuing various monetization opportunities, such as copper sales and real estate divestments, the timing and success of these initiatives remain uncertain. The company’s focus on improving its balance sheet and dividend coverage is positive, but the unpredictable nature of these potential transactions suggests a cautious approach. This combination of potential and uncertainty underpins the decision to maintain a Neutral stance on the stock.