BofA downgraded Telus (TU) to Neutral from Buy with a price target of C$22, down from C$24. Challenges facing Telus include “unsustainable” leverage, a dividend greater than free cash flow, and reported free cash flow that includes contributions of a consolidated subsidiary that is not available to satisfy dividend obligations, the analyst tells investors. Following Q4 results, the firm reduced its forecasted dividend growth to 4% from 7%, the analyst noted.
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