CIBC Capital Markets lowered its price target on TELUS Corp. (T.TO, TU) to $24 from $25.
Analyst Stephanie Price maintained an Outperform rating on shares of the Canadian telecom company.
"We see TELUS as well positioned within a tough telecom environment," Price said in a note to clients.
"With its fibre rollout complete, we are expecting a 2% capex reduction and FCF growth of 8.5% Y/Y in 2025E," the analyst said.
"We expect further penetration gains within its fibre footprint, with the wireless business continuing to execute well in a competitive environment," Price said.
"We expect that margins at TELUS Digital will bottom in 2025E, with cost efficiencies at TELUS leading to flat consolidated margins. We see upside at TELUS from divestiture opportunities (copper/real estate) and growth businesses (TELUS Health and Ag)."
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