Telus' (TU) performance is tracking to the low-to-mid end of its reaffirmed revenue and earnings before interest, taxes, depreciation and amortization growth guidance for 2026, RBC Capital Markets said in a note Sunday.

In the absence of recurring Q1-like promotional intensity, management sees ongoing sequential improvement in year-on-year wireless network revenue growth as the year progresses, reiterating the expectation of steady TTech multiyear margin expansion, the brokerage said.

The company further sees Telus Health crystallization process as "well underway" with interest from multiple parties, with a transaction update likely coming this summer or in concurrence with its Q2 results, according to the note.

Telus maintains a premium valuation relative to large cap peers, with the company sustaining 3% or higher adjusted EBITDA growth and continuing to make progress towards management's 10% consolidated capex intensity objective, among others, the brokerage said.

RBC maintained its outperform rating on the stock, with a 22 Canadian dollars ($16.10) price target.

Price: 12.69, Change: -0.06, Percent Change: -0.51