Telus, the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Vince Valentini from TD Cowen maintained a Buy rating on the stock and has a C$26.00 price target.
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Vince Valentini has given his Buy rating due to a combination of factors including Telus’s recent strategic decisions and financial guidance. The company’s management has shown a willingness to pause dividend growth and offer multi-year free cash flow (FCF) guidance, which has been positively received by the market. This move is seen as a foundational step in recovering investor sentiment.
Additionally, Telus’s plans to monetize non-core assets and provide solid EBITDA growth guidance for 2026 are viewed favorably. Valentini notes that while there are concerns about the alignment of capex and FCF, he believes these do not indicate weaker EBITDA. The adjustments in forecasts and the expectation of asset sales contribute to a positive outlook on leverage, supporting the Buy rating.
Valentini covers the Communication Services sector, focusing on stocks such as Telus, Quebecor, and BCE. According to TipRanks, Valentini has an average return of 0.6% and a 53.87% success rate on recommended stocks.
In another report released yesterday, Canaccord Genuity also upgraded the stock to a Buy with a C$21.00 price target.