Telus Hold Rating: Mixed Financial Signals and Strategic Moves Influence Stability

Canaccord Genuity analyst Aravinda Galappatthige maintained a Hold rating on Telus today and set a price target of C$21.50.

Aravinda Galappatthige has given his Hold rating due to a combination of factors including Telus’s recent financial performance and strategic moves. The company’s Q2 results were largely in line with expectations, with some areas performing slightly better and others falling short. Notably, the agreement with La Caisse to sell a 49.9% interest in its tower company Terrion LP for $1.26 billion was a significant development, aligning with market expectations for asset valuation.
Despite these strategic moves, some financial metrics such as adjusted EPS fell short of estimates, and the wireless service revenue growth remained negative. The company’s leverage ratio is expected to improve, but the unchanged guidance for 2025 suggests limited upside in the near term. These mixed signals contribute to the Hold rating, as the stock may not offer significant gains but remains stable enough for current investors.

In another report released on July 17, Barclays also maintained a Hold rating on the stock with a $15.00 price target.

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