National Bankshares has reduced its price target for TELUS (TSE:T, NYSE:TU) from C$21.50 to C$21.00, according to a report released on Wednesday. The bank maintains an outperform rating on the stock, reflecting a positive outlook despite the adjustment. This change comes amid a broader reevaluation of TELUS by several financial institutions.
In addition to National Bankshares, other brokerages have recently updated their ratings for TELUS. Canaccord Genuity Group upgraded the stock from a “hold” rating to a “buy” rating on December 4, 2023. Conversely, Desjardins lowered its price objective from C$25.00 to C$24.00 while retaining a “buy” rating in a report issued on October 9, 2023. Furthermore, National Bank of Canada elevated its rating from “hold” to “strong-buy” on November 25, 2023.
CIBC also revised its target price, increasing it from C$24.00 to C$25.00 in a report on October 17, 2023. In contrast, JPMorgan Chase & Co. downgraded TELUS from a “neutral” rating to an “underweight” rating and reduced its price target from C$22.00 to C$19.00 on November 18, 2023. Overall, market analysts have provided a mix of ratings, with one analyst assigning a Strong Buy designation, seven identifying it as a Buy, three as a Hold, and one as a Sell. According to MarketBeat, the consensus rating for TELUS is “Moderate Buy,” with an average price target of C$22.21.
TELUS Stock Performance Overview
As of the opening on Wednesday, TELUS shares traded at C$17.50. The stock’s performance has demonstrated volatility, with a 50-day simple moving average of C$19.35 and a 200-day simple moving average of C$21.18. Over the past year, TELUS has experienced a 12-month low of C$17.26 and a high of C$23.29. The company boasts a market capitalization of C$27.14 billion, a price-to-earnings (P/E) ratio of 22.44, and a P/E/G ratio of 1.65. Additionally, TELUS has a beta of 0.90, indicating its relative volatility compared to the market.
The company’s financial health is reflected in its debt-to-equity ratio of 183.41, a quick ratio of 0.52, and a current ratio of 0.69. TELUS reported its quarterly earnings on November 7, 2023, revealing an earnings per share (EPS) of C$0.24. The company’s return on equity stands at 5.80%, with a net margin of 4.62%. For the current fiscal year, analysts estimate an EPS of approximately 1.23.
About TELUS
TELUS is one of Canada’s major telecommunications companies, serving approximately 9 million mobile phone subscribers, which accounts for about 30% of the national market. The company operates as the incumbent local exchange carrier in western provinces such as British Columbia and Alberta, offering internet, television, and landline phone services. TELUS is also expanding its fiber network, enhancing its capabilities to compete with cable providers across its service areas.
As TELUS navigates these market challenges and opportunities, its strategic moves will be crucial in determining future investor confidence and stock performance.