Telus Hold Rating: Balanced Growth Prospects Amidst Segment Challenges

Analyst Aravinda Galappatthige of Canaccord Genuity maintained a Hold rating on Telus (TU – Research Report), retaining the price target of C$20.25.

Aravinda Galappatthige has given his Hold rating due to a combination of factors impacting Telus’s performance. While the company reported better-than-expected results in terms of EBITDA and EPS, driven by effective cost management, the overall growth outlook remains modest. The guidance for 2025 indicates revenue growth between 2% and 4% and adjusted EBITDA growth between 3% and 5%, which suggests steady but not exceptional growth prospects.
Additionally, while Telus has shown positive trends in its Health and AgTech segments, with significant revenue increases, challenges remain in the wireless segment, where service revenue growth was negative. The competitive landscape and restrictions on immigration have impacted net additions to mobile phones, and the mobile ARPU has declined. These mixed results across segments contribute to the Hold rating, reflecting a cautious approach to the stock’s future performance.

Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TU in relation to earlier this year.