Telus (TU) artificial intelligence-driven revenue growth target could serve as "a much-needed structural tailwind" for its business-to-business segment, RBC Capital Markets said in a Monday note.

The company reported Q3 results in line with expectations and reiterated its medium-term targets, while announcing a CA$2 billion ($1.42 billion) external AI-enabled revenue target by 2028 as part of its broader AI strategy, the brokerage noted.

The revenue goal compares with the CA$800 million targeted for 2025 and represents a 35% compound annual growth rate. The AI-enabled revenues comprise TELUS Digital and TELUS Business Solutions, including the Sovereign AI Factory.

The extent to which the acceleration in AI revenue will translate to fixed data services revenue growth "remains to be seen," particularly given declining legacy wireline revenue, according to the note.

In other Telus businesses, RBC noted higher IoT revenues, Internet net additions, and strong bookings growth in certain Telus Health segments, among other highlights.

The firm reiterated its CA$24 price target on Telus with a outperform rating.