Investment analysts at National Bank Canada have upgraded TELUS Corporation (NYSE: TU, TSE: T) from a “hold” rating to a “strong-buy” rating. This significant shift was announced in a report released on November 19, 2023. The upgrade reflects growing confidence in TELUS’s performance amid fluctuating market conditions.
Analysts from other financial institutions have also recently analyzed TELUS shares. Weiss Ratings maintained a “hold (c)” rating, while Barclays reduced its target price from $15.00 to $14.00, assigning an “equal weight” rating. In contrast, JPMorgan Chase & Co. reaffirmed an “underweight” rating and set a price target of $19.00, down from $22.00. National Bank Financial has raised its rating from “sector perform” to “outperform.” Currently, one analyst rates TELUS as a strong buy, two as a buy, seven as hold, and one as sell.
According to MarketBeat.com, the consensus rating for TELUS stands at “hold,” with an average price target of $18.17.
Quarterly Earnings Reveal Missed Estimates
TELUS released its quarterly earnings data on November 7, 2023, reporting earnings per share (EPS) of $0.17. This figure fell short of the consensus estimate of $0.19 by $0.02. The company’s revenue for the quarter reached $3.67 billion, which was lower than analysts’ expectations of $3.77 billion. TELUS recorded a net margin of 5.71% and a return on equity of 8.76%. Notably, revenue increased by 0.1% compared to the same quarter last year, although EPS decreased from $0.28 during the same period in the previous year. Analysts predict TELUS will achieve an EPS of $0.71 for the current fiscal year.
Institutional Investors Adjust Holdings
Recent activity among institutional investors indicates a notable interest in TELUS. Geode Capital Management LLC increased its holdings in the company by 20.8% during the second quarter, now owning 4,529,471 shares valued at $76.3 million after purchasing an additional 780,607 shares. Picton Mahoney Asset Management also entered the fray, acquiring a stake valued at approximately $51.1 million.
Achmea Investment Management B.V. significantly boosted its holdings by an impressive 2,950.8%, now owning 34,901 shares worth $560,000 following the acquisition of 33,757 additional shares. Moreover, Goldman Sachs Group Inc. raised its stake by 196.2% in the first quarter, now holding 11,836,479 shares valued at $169.7 million. TD Waterhouse Canada Inc. also increased its holdings by 6.0% during the second quarter.
Institutional investors collectively own 49.40% of TELUS’s stock, highlighting significant backing from major financial entities.
TELUS Corporation, based in Canada, offers a wide array of telecommunications and information technology products and services. Its operations are divided into segments that include Technology Solutions and Digitally-Led Customer Experiences, providing services such as mobile technology, data services, and healthcare solutions. The ongoing adjustments in stock ratings and institutional investments suggest a dynamic period ahead for TELUS.
