Should you sell your Telus stock?

TD Cowen analyst Vince Valentini reiterated a “Buy” rating and Street-high $26.00 target on Telus (Telus Stock Quote, Chart, News, Analysts, Financials TSX:T) in a Nov. 27 update after a series of investor meetings with company executives, saying he expects the stock to recover “over the next few months.”

As reported by the Globe and Mail, he reiterated his “Buy” rating $26.00 target for Telus shares. The average on the Street is $21.56.

Valentini said management appears “highly motivated” to advance asset sales to reduce interest costs, adding that free cash flow should fully cover the dividend by the end of 2027 “even with only modest EBITDA growth.”

He argued comparisons to BCE’s pre-cut period are misplaced, noting Telus’s lower payout ratio, heavier fibre penetration and capex flexibility, and “a revenue mix with more organic growth potential.”

Under that scenario, the analyst said, a 7% dividend yield would imply a share price of $24.00.

He highlighted Telus Health as a key longer-term contributor, saying the division’s outlook is unchanged from his June deep-dive but that he was “impressed with the execution plan laid out by President Mohamed El-Demerdash.”

Valentini said Telus is already a major global EAP provider with only 6%–8% market share, leaving “lots of room for growth.” He said preventative care remains a large addressable market and that Telus Health “is well positioned to gain share.”

Valentini said recent share-price weakness has narrowed Telus’s valuation gap to peers, prompting him to move the stock to number two in his sector ranking. He called concerns about weak EBITDA growth and dividend risk “overblown,” adding that catalysts in the first half of 2026 should improve investor confidence in leverage reduction, lower the payout ratio, and support eliminating the DRIP discount.

His 2026 estimates and target price remain unchanged, though he incorporated slightly higher interest costs to bring free cash flow forecasts closer to the Street.

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