Telus Maintained at Neutral by UBS Following Q4 Results; Price Target Kept at C$24.00
11:19 AM EST, 02/12/2024 (MT Newswires) -- UBS on Monday reiterated its neutral rating on the shares of Telus (T.TO) and its C$24.00 price target after the telecom company reported fourth-quarter results.
"Telus 4Q revenues were light, mainly in wireline, while EBITDA was ahead. Revenues grew 2.8% yoy (UBSe 3.5%; Street 4.1%) or UBSe 0.9%+ pro forma for deals, vs. +1.6% in 3Q. Adj. EBITDA grew 9.4% (UBSe 7.3%; street 7.7%) or UBSe 8.4% ex deals, driving $0.24 in adj. EPS (UBSe/street $0.23). FCF was ahead at $590M (UBSe $368M; street $314M) despite higher capex of $533M (UBSe $416M; street $407M). For 2024, mgmt expects TTech revenue growth of 2-4% (UBSe 3.9% & street 3.8%), adj EBITDA growth of 5.5 - 7.5% (UBSe 5.8% & street 6.4%) vs. MSD in 23 ex-deals; capex of ~$2.6B (UBSe/street $2.6B), and FCF of ~$2.3B (UBSe/street $2.3B). Telus declared 7.1% yoy growth in dividend per share, in line with the recent trend," the investment bank wrote.
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Price: 23.51, Change: -0.14, Percent Change: -0.57