Raised Targets Concurrently, several analysts adjusted their targets for parent company Telus Corp., which gained 2.4 per cent on Friday following its earnings release and dividend raise.
They include:
* RBC’s Drew McReynolds to $34 from $33 with an “outperform” rating. The average is $32.33.
“TELUS remains our best idea in Canadian telecom,” said Mr. McReynolds. “We view 2022 as a pivotal turning point for TELUS as the company transitions into a new post-FTTH build / 5G phase. We expect the company to emerge in 2023 with a distinctively different financial and operational profile relative to most global telecom peers. As FTTH coverage reaches 85-90 per cent of the targeted broadband footprint by the end of 2022, enhanced capex flexibility should enable TELUS to capitalize on 5G without meaningful capital constraints, opportunity costs or FCF impairment. Longer term, under certain operational and regulatory conditions, we see strong strategic and financial rationale for TELUS to explore a transformational re-organization that can fully unlock the value of core infrastructure assets and core technology assets.”
* CIBC’s Stephanie Price to $31 from $30 with a “neutral” rating.
* National Bank’s Adam Shine to $35 from $34 with an “outperform” rating.