Stifel Financial Corp has reportedly reduced its stake in TELUS Co. by a considerable 38.7% during the third quarter. This reduction equated to the sale of 50,068 shares of TELUS Co. Consequently, the total value of Stifel Financial Corp’s holdings in TELUS Co. dropped to $1,330,000 by the end of the third quarter.
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How Does Stock Target Advisor Rate Telus Corp (T:CA)?
In response to these market activities, Stock Target Advisor has given Telus Corp a rating of Hold with a target price of CAD 24.19. It’s important to note that the average analyst target price for Telus Corp over the next 12 months is slightly higher, at CAD 24.44, with an average rating of Strong Buy.
Comparing these figures to recent changes, Telus Corp’s stock price has seen a decrease of -0.78% over the past week, -1.51% over the past month, and a more significant -15.20% over the last year.
What Does Telus Corp’s Financial Performance Analysis Reveal?
Within the last year, Telus Corp’s capital gains have decreased by 15.2%, their dividend returns have increased by 6.7% which led to a total return of -8.5%. Looking at five-year growth, the company shows an impressive revenue growth of 41.93%. However, the earnings growth of -47.44% stands as a negative signal.
Key profitability ratios such as return on assets (RoA: 3.43%), return on equity (RoE: 5.39%), and return on invested capital (RoIC: 5.02%) indicate potential areas for improvement. The company’s debt equity ratio stands at 144.95%, which may be cause for concern.
How Does Telus Corp Compare to Its Sector?
When comparing Telus Corp’s performance to the sector analysis for Telecom Services in the “TSX” exchange, Stock Target Advisor indicates a slightly bearish outlook. The sector’s 1-month return average is -0.63%, and its one-week return average is -0.88%.
Although Telus Corp is among the largest stocks in the sector, it competes with companies like BCE Inc, Cogeco Communications Inc, Cogeco Inc., and TeraGo Inc.
Conclusion:
Considering the aforementioned analysis, investors may wish to approach Telus Corp (T:CA) with an air of caution. While the company presents several positive attributes, the negative signals — particularly those tied to sector dynamics and stock performance—warrant careful consideration.
It is advisable for investors to remain vigilant of the company’s debt levels, returns, and valuations to properly gauge its long-term investment potential.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
