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Investing.com - Scotiabank raised its price target on Telus International (NYSE:TIXT) stock to $4.50 from $3.40 on Thursday, while maintaining a Sector Perform rating. The stock has shown strong momentum, gaining 16.45% in the past week and trading near $4.46.
The price target adjustment reflects the proposed acquisition price for Telus International, which is approximately 32% higher than the initial offer from TELUS.
The new valuation places the company at a 5.725x EV/EBITDA multiple based on Scotiabank’s next-twelve-month forward estimates.
Scotiabank views the deal closure as "the best possible outcome for TIXT shareholders in the near term," particularly given current macroeconomic conditions and Telus International’s client relationship with TELUS.
The firm made no changes to its estimates for the company, and the updated price target directly aligns with the proposed transaction price of US$4.50 per share.
In other recent news, TELUS International reported its second-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share of $0.06, exceeding the forecasted $0.05. Revenue also outperformed projections, reaching $699 million compared to the anticipated $660.62 million. Additionally, TELUS Corporation announced a definitive agreement to fully acquire TELUS International at $4.50 per share. This acquisition price represents a 32% premium over the initial bid of $3.40 per share. Following this announcement, Stifel downgraded TELUS International’s stock rating from Buy to Hold, while raising its price target to $4.50. These developments mark significant recent activities surrounding TELUS International.
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