Telus (TU) – Research Analysts’ Weekly Ratings Changes

A number of research firms have changed their ratings and price targets for Telus (NYSE: TU):

  • 5/11/2018 – Telus had its price target lowered by analysts at Barclays from $42.00 to $41.00. They now have an “overweight” rating on the stock.
  • 5/11/2018 – Telus was downgraded by analysts at CIBC from a “sector outperform” rating to a “neutral” rating.
  • 5/11/2018 – Telus was given a new $52.00 price target on by analysts at Echelon Wealth Partners. They now have a “buy” rating on the stock.
  • 5/4/2018 – Telus was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “TELUS continues to face severe competition in both the wireless and wireline segments. Margins remain strained as cable TV operators move from phone services based on ‘circuit-switched’ technology to the less costly Voice-over-Internet Protocol. Such intense competitive pressure has resulted in reduced subscriber addition for the company. On a P/E (TTM) basis, TELUS looks a bit overvalued compared with the industry. This forces us to be bearish and investors should ideally wait for a better entry point on the stock. However, TELUS continues to benefit from increased penetration of smartphones, higher average revenue per unit, accelerating wireless data services and growing wireline fiber optic networks. The stock has also outperformed the industry, on an average, in the past three months.”
  • 4/30/2018 – Telus was upgraded by analysts at Morgan Stanley from an “equal weight” rating to an “overweight” rating. They now have a $51.00 price target on the stock.
  • 4/19/2018 – Telus was downgraded by analysts at ValuEngine from a “buy” rating to a “hold” rating.
  • 4/12/2018 – Telus was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “TELUS continues to face severe competition in both the wireless and wireline segments. In the wireless segment, it competes against Rogers Communications and Bell Canada. Such intense competitive pressure has resulted in reduced subscriber addition for the company. Moreover, Shaw Communications’ decision to venture into the Canadian wireless market with the WIND Mobile acquisition raises competition for TELUS. Also, the company’s valuation looks stretched in terms of price-to-earnings ratio when compared with the industry. The stock has also underperformed the industry, on an average, in the last three months. However, TELUS continues to benefit from increased penetration of smartphones, higher average revenue per unit, accelerating wireless data services and growing wireline fiber optic networks.”
  • 3/20/2018 – Telus was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “TELUS continues to benefit from massive wireless subscriber gain, increased penetration of smartphones, higher average revenue per unit, accelerating wireless data services and growing wireline fiber optic networks. Buyout of Voxpro expanded TELUS International's U.S. track. Meanwhile, we appreciate TELUS' multi-year dividend growth schemes, since May 2011. Till now, the company has announced 14 dividend hikes. The company has consolidated its foothold in the Internet of Things market and is focusing on its PureFibre network business. However, TELUS continues to face fierce competition in both the wireless and wireline segments. In the wireless segment, it competes against Rogers Communications and Bell Canada. Cable TV operators such as Shaw Communications poses threat on the wireline side. Further, in the past three months, the stock declined 5.3% as against the industry's 3.5% loss. “

Telus traded down $0.23, hitting $35.42, on Friday, according to Marketbeat.com. 20,089 shares of the stock traded hands, compared to its average volume of 391,539. Telus has a twelve month low of $35.44 and a twelve month high of $35.59. The stock has a market capitalization of $21.26 billion, a P/E ratio of 17.45, a PEG ratio of 2.08 and a beta of 0.88. The company has a quick ratio of 0.81, a current ratio of 0.90 and a debt-to-equity ratio of 1.37.

Telus (NYSE:TU) (TSE:T) last announced its quarterly earnings data on Thursday, May 10th. The Wireless communications provider reported $0.60 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.59 by $0.01. Telus had a return on equity of 18.19% and a net margin of 10.65%. The firm had revenue of $3.38 billion for the quarter, compared to analysts’ expectations of $3.36 billion. During the same quarter in the prior year, the firm posted $0.74 earnings per share. Telus’s revenue for the quarter was up 6.1% compared to the same quarter last year. analysts anticipate that Telus will post 2.14 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 3rd. Shareholders of record on Friday, June 8th will be paid a dividend of $0.409 per share. The ex-dividend date is Thursday, June 7th. This represents a $1.64 annualized dividend and a yield of 4.62%. This is a boost from Telus’s previous quarterly dividend of $0.40. Telus’s dividend payout ratio is presently 79.31%.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Aperio Group LLC raised its position in shares of Telus by 30.4% during the 1st quarter. Aperio Group LLC now owns 7,373 shares of the Wireless communications provider’s stock worth $259,000 after purchasing an additional 1,721 shares during the period. Envestnet Asset Management Inc. increased its position in Telus by 13.7% in the 1st quarter. Envestnet Asset Management Inc. now owns 16,959 shares of the Wireless communications provider’s stock valued at $596,000 after acquiring an additional 2,043 shares during the period. FDx Advisors Inc. increased its position in Telus by 17.3% in the 1st quarter. FDx Advisors Inc. now owns 16,035 shares of the Wireless communications provider’s stock valued at $564,000 after acquiring an additional 2,366 shares during the period. NewSquare Capital LLC increased its position in Telus by 9.4% in the 4th quarter. NewSquare Capital LLC now owns 28,027 shares of the Wireless communications provider’s stock valued at $1,061,000 after acquiring an additional 2,417 shares during the period. Finally, Northwest Bancshares Inc. increased its position in Telus by 5.6% in the 1st quarter. Northwest Bancshares Inc. now owns 52,987 shares of the Wireless communications provider’s stock valued at $1,863,000 after acquiring an additional 2,794 shares during the period. Hedge funds and other institutional investors own 51.24% of the company’s stock.

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications products and services in Canada. It operates through Wireless and Wireline segments. The company's telecommunications products and services comprise wireless and wireline voice and data services; data services, including Internet protocol; television services; hosting, managed information technology, and security and cloud-based services; healthcare solutions; business process outsourcing; and security solutions.

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