TELUS International: Hold Rating Amid Modest Growth and Competitive Challenges

William Blair analyst Maggie Nolan has reiterated their neutral stance on TIXT stock, giving a Hold rating on April 29.

Maggie Nolan has given her Hold rating due to a combination of factors influencing TELUS International’s current and future performance. The company’s first-quarter results exceeded revenue and EPS estimates, aligning with adjusted EBITDA forecasts, and management has reaffirmed its 2025 guidance. However, while revenue has shown growth, particularly in AI and data solutions, the overall increase is modest at 2% year-over-year, with a competitive pricing environment that remains complex.
Despite the positive revenue trends, the company’s margins are expected to face pressure in the near term due to ongoing cost optimization challenges and the competitive nature of the market. Furthermore, recent management changes, including the transition of the outgoing CEO to a new role, may require time for the company to fully adapt. These factors contribute to a cautious outlook, leading to the Hold rating as the company continues its transition towards more reliable results and potential margin improvements anticipated in 2026.

In another report released on April 29, Scotiabank also maintained a Hold rating on the stock with a $3.00 price target.