UPDATE: BMO Capital Markets Downgrades Telus on Growing Uncertainty with Wireless Competition

In a report published on Thursday, BMO Capital Markets analyst Tim Casey donwgraded Telus TU from Outperform to Market Perform and lowered the price target on the company from $40 to $35.

In the report, BMO Capital Markets stated, "There is growing uncertainty regarding wireless competition which we believe is causing a re-rating of incumbent wireless businesses. As such, we are downgrading the shares of large incumbent providers with relatively high exposure to wireless. On a consolidated basis, TELUS, along with Rogers, derives >60% of its EBITDA from wireless vs. ~30% for BCE and 0% for Shaw. Given that it has the highest exposure to wireless of the large cable/telcos, we believe that TELUS has a significant amount to lose from the incursion of a new large, well-capitalized competitor (Verizon)."

Telus closed on Wednesday at $29.37.