Telus will have “another life”, this investor says

On BNN Bloomberg Market Call on April 16, Newhaven Asset Management CEO and portfolio manager Ryan Bushell said Telus (Telus Stock Quote, Chart, News, Analysts, Financials TSX:T) remains a long-term value play despite the stock’s prolonged decline, arguing the company still owns high-quality network assets and could benefit from change at the top.

Bushell noted the stock has been cut roughly in half from its 2022 highs, weighed down in part by regulatory pressure on the telecom sector, including network-sharing and competition rules. Even so, he said the underlying fibre assets still hold long-term value and continue to support the investment case.

He also pointed to incoming CEO Victor Dodig as a potential catalyst, saying new leadership could help reshape the story.

In his view, the shares now look washed out, and even in a downside scenario where the dividend is reduced, the stock would still offer a meaningful yield.

“This is a company that will have another life,” Bushell said.

Bushell added that for investors who have been averaging down, the current level could still offer a path to long-term gains, especially with the dividend providing support along the way.

Among analysts covering the stock, five rate it “Buy,” 10 rate it “Hold” and two rate it “Sell,” with a consensus price target of $19.97.

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