Telus' Guidance Reset Cuts Growth Optimism

Dow Jones
08/05

1215 ET - Telus' large cut to 2028 outlook for free cash flow is not just a miss but a material reset, says BofA's Matthew Griffiths. In a report, the analyst notes that the Canadian telco now expects service 2026 revenue growth at flat to down 2%, from a growth of 2%-4%, and adjusted Ebitda now seen down 2%-4% rather than up 2%-4%. Free cash flow guidance for the year is now C$650 million lower at C$1.8 billion, on weaker Ebitda and higher capex. However "the 26% cut to 2028E free cash flow expectations is most concerning element of its guide," Griffiths says, downgrading the stock to underperform from buy, and lowering the price target to C$13 from C$22. Shares are down 2.8% to C$13.00, and now down 28% year-to-date.

 

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