Stellantis Expands EV Charging Access with Tesla Supercharger Network Integration
Investing.com - JPMorgan downgraded TELUS Corp. (TSX:T) (NYSE:TU) from Neutral to Underweight on Tuesday, while reducing its price target to C$19.00 from C$22.00.
The downgrade reflects concerns about TELUS’s dividend sustainability, with JPMorgan noting that the company’s dividend payout is expected to exceed 100% of free cash flow through 2030.
JPMorgan also cited lower growth projections for TELUS Technology (TTech) and consolidated EBITDA, forecasting a 1.4%/1.8% CAGR through 2030 despite expected TELUS Digital cash synergies.
The firm pointed to heightened competition and potential market share losses in Western Canada as Quebecor builds momentum and BCE launches Fibe Internet, creating additional pressure on TELUS’s business.
TELUS shares have underperformed competitors BCE and Rogers by 6% and 21% respectively since July 1, which JPMorgan attributes partly to investor rotation out of TELUS due to easing promotional intensity in wireless services.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.