Telus upgraded to Buy at Canaccord after selloff

As previously reported last night, Canaccord upgraded Telus (TU) to Buy from Hold with an unchanged price target of C$21, citing the 15% selloff in the stock on a quarter-to-date basis against a 3% advance for the group as well as yesterday’s issuance of free cash flow objectives through to 2028. While “the weight of empirical evidence around large cap companies crossing the 9% dividend yield mark points to an eventual dividend cut,” the firm sees Telus “potentially bucking that trend and maintaining its distribution” and suspects that concerns around the dividend could taper off as more of its balance sheet de-levering initiatives play out, the analyst tells investors.