National Bank trims target on Telus

He thinks the company will soon raise its dividend, but National Bank Financial analyst Adam Shine isn’t all in on Telus (Telus Stock Quote, Chart, News, Analysts, Financials TSX:T).

As reported by the Globe and Mail, Shine March 25 maintained his “Outperform” rating on Telus but cut his price target on the stock from $27.00 to $26.00.

The analyst said the company is facing headwinds.

“Growth steps down as M&A has been lapped, renewed traction out of verticalization strategy only comes post-1H, and Telus contends with greater competitive intensity in wireline and wireless after Rogers bought Shaw and Quebecor acquired Freedom on 4/3/23,” he wrote. “Restructuring savings of over $325-million were to be achieved exiting 1Q24 with ongoing efforts to extract M&A synergies.”

The analyst thinks Telus will post Adjusted EBITDA of $1.82-billion on revenue of $4.94-billion in its upcoming Q1, 2024 results, due in May.

At press time, shares of Telus were down 2.0% to $21.315.