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 (NYSE: 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.
Latest Ratings for TU
|Feb 2017||National Bank Financial||Upgrades||Sector Perform||Outperform|
|Jan 2017||Canaccord Genuity||Upgrades||Hold||Buy|
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