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Investing.com - BMO Capital raised its price target on TELUS Corp . (TSX:T) (NYSE:TU) to C$24.00 from C$23.00 while maintaining an Outperform rating on the Canadian telecommunications company. According to InvestingPro data, TELUS, a prominent player in the telecommunications sector, maintains a robust 7.48% dividend yield and has raised its dividend for 21 consecutive years.
The price target increase reflects BMO’s observation that the wireless pricing environment appears to be improving, with operators raising prices in April and largely maintaining those levels throughout the quarter.
BMO noted that the CRTC’s recent wholesale fibre decision represents a tailwind for TELUS, citing the company’s relative legacy network scale and bundling capabilities as advantages in the market.
The research firm identified deleveraging as a key focus for TELUS and expects a tower sale in the near term, while also noting that TELUS is looking to reacquire the remaining stake of TELUS Digital it does not currently own.
BMO made modest adjustments to its forecasts for TELUS, with increases in the Health segment largely offset by changes in the Agriculture and TELUS Digital divisions.
In other recent news, TELUS Corporation reported its first quarter 2025 results, showcasing continued customer growth and solid financial performance. The company announced adjusted earnings per share of $0.26, aligning with analyst expectations, while revenue increased by 3% year-over-year to reach $5.1 billion, slightly surpassing projections. The TTech segment, which includes TELUS’s core telecom operations and the new TELUS Health unit, experienced a 3% rise in operating revenue and a 4% growth in adjusted EBITDA compared to the previous year. TELUS maintained its quarterly dividend at $0.4163 per share, reflecting a 7% increase from the prior year and extended its dividend growth program, aiming for annual increases of 3-8% through 2028. The company added 218,000 net new mobile and fixed customers during the quarter, marking its strongest first quarter on record for customer additions. Free cash flow saw a significant increase of 22% year-over-year, amounting to $488 million. TELUS reaffirmed its 2025 financial targets, including 2-4% revenue growth and 3-5% adjusted EBITDA growth for its TTech segment. These developments reflect TELUS’s resilience in a dynamic operating environment.
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