Telus Digital FY2025 EPS Lowered by National Bank Financial

Key Points

• National Bank Financial has revised Telus Digital's FY2025 earnings estimate down to $0.29 per share, a decrease from the previous estimate of $0.45.
• Multiple brokerages have updated their ratings, with CIBC lowering Telus Digital from "neutral" to "tender" and raising the target price to $4.50.
• Hedge funds and institutional investors now own 59.55% of Telus Digital's stock, with notable increases in holdings from firms like Mackenzie Financial Corp and Acadian Asset Management LLC.

Telus Digital (NYSE:TIXT - Free Report) - Equities researchers at National Bank Financial cut their FY2025 earnings per share (EPS) estimates for shares of Telus Digital in a research note issued to investors on Tuesday, September 2nd. National Bank Financial analyst R. Tse now forecasts that the company will post earnings of $0.29 per share for the year, down from their previous forecast of $0.45. National Bank Financial currently has a "Sector Perform" rating and a $4.00 target price on the stock. The consensus estimate for Telus Digital's current full-year earnings is $0.32 per share. National Bank Financial also issued estimates for Telus Digital's FY2026 earnings at $0.45 EPS.

Telus Digital (NYSE:TIXT - Get Free Report) last posted its earnings results on Friday, August 1st. The company reported $0.06 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.01. Telus Digital had a negative net margin of 14.09% and a positive return on equity of 1.99%. The company had revenue of $711.33 million for the quarter, compared to analysts' expectations of $660.87 million. Telus Digital has set its FY 2025 guidance at 0.320-0.320 EPS.

A number of other analysts have also issued reports on the stock. National Bankshares lowered shares of Telus Digital from a "sector perform" rating to a "tender" rating and boosted their price target for the stock from $4.00 to $4.50 in a research note on Wednesday, September 3rd. Stifel Canada lowered shares of Telus Digital from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 2nd. Scotiabank raised their price objective on shares of Telus Digital from $3.40 to $4.50 and gave the company a "sector perform" rating in a report on Thursday, September 4th. Stifel Nicolaus lowered shares of Telus Digital from a "buy" rating to a "hold" rating and raised their price objective for the company from $4.00 to $4.50 in a report on Wednesday, September 3rd. Finally, Morgan Stanley reduced their price objective on shares of Telus Digital from $3.49 to $3.40 and set an "equal weight" rating on the stock in a report on Monday, August 4th. Nine research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $3.93.

Telus Digital Trading Down 0.6%

NYSE TIXT traded down $0.03 during trading hours on Friday, reaching $4.51. The company had a trading volume of 646,301 shares, compared to its average volume of 751,909. The stock has a 50-day moving average of $3.92 and a 200 day moving average of $3.21. Telus Digital has a 1-year low of $2.13 and a 1-year high of $4.60. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.85. The stock has a market capitalization of $1.25 billion, a P/E ratio of -3.25 and a beta of 0.91.

Institutional Investors Weigh In On Telus Digital

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Gabelli Funds LLC purchased a new stake in Telus Digital in the second quarter valued at approximately $36,000. Bayesian Capital Management LP purchased a new position in shares of Telus Digital during the fourth quarter worth approximately $45,000. Dynamic Technology Lab Private Ltd purchased a new position in shares of Telus Digital during the first quarter worth approximately $58,000. PDT Partners LLC grew its position in shares of Telus Digital by 79.9% during the first quarter. PDT Partners LLC now owns 28,058 shares of the company's stock worth $75,000 after acquiring an additional 12,458 shares during the last quarter. Finally, Avior Wealth Management LLC purchased a new position in shares of Telus Digital during the second quarter worth approximately $85,000. Hedge funds and other institutional investors own 59.55% of the company's stock.

About Telus Digital

TELUS Digital Inc design, builds, and delivers digital solutions for customer experience (CX) in the Asia-Pacific, the Central America, Europe, Africa, North America, and internationally. The company provides digital experience solutions, such as AI and bots, omnichannel CX, enterprise mobility solutions, cloud contact center, big data analytics, platform transformation, and UX/UI design; and customer experience solutions, including work anywhere/work from home, contact center outsourcing, technical support, sales growth and customer retention, healthcare/patient experience, and debt collection.