01:23 PM EST, 12/15/2023 (MT Newswires) -- In his preview of Telus' Q4, National Bank analyst Adam Shine is looking for total revenue of $5230 million, operating revenue of $5210 million, Adj. EBITDA $1810 million, Adj. EPS $0.22, capex $417 million & FCF $360 million. Consensus is at $5223 million, $5213 million, $1819 million, $0.23, $402 million & $363 million, respectively.
Telus reports on February 9.
Telus lowered its 2023 guidance after a reduced outlook from Telus International and materially expanded its headcount reduction (7K from 1K) and restructuring program ($750 million from $275 million in costs, over $325 million savings to be achieved by Q1 24). As Telus works through its restructuring and pursuit of savings & synergies, it is experiencing added competitive intensity in both wireless and wireline, Shine notes. His forecast has been revised with more conservative assumptions.
Leaving $27 target unchanged as Shine has opted to push out valuation six months (prior valuation moved down $1) and now base it on average of 2024E DCF & 2025E NAV, with implied EV/EBITDA multiples of 9.2x PF2023E, 8.6x 2024E & 8.1x 2025E.
Maintain Outperform.
Price: 24.16, Change: -0.48, Percent Change: -1.95