Morgan Stanley Lowers Telus Digital (NYSE:TIXT) Price Target to $3.40

Key Points

• Morgan Stanley has reduced the price target for Telus Digital from $3.49 to $3.40, suggesting a potential downside of 7.98% from its previous close.
• Analysts have varied target prices, with estimates ranging from $3.00 to $4.50, and Telus Digital currently holds a consensus rating of "Hold" among research analysts.
• Despite the lower price targets, Telus Digital reported earnings of $0.06 per share, surpassing analyst expectations, along with revenues of $711.33 million for the last quarter.

Telus Digital (NYSE:TIXT - Free Report) had its price objective lowered by Morgan Stanley from $3.49 to $3.40 in a research report sent to investors on Monday,Benzinga reports. The brokerage currently has an equal weight rating on the stock.

TIXT has been the subject of a number of other research reports. CIBC reduced their price objective on Telus Digital from $4.50 to $3.40 and set a "neutral" rating for the company in a report on Friday, June 13th. Scotiabank upped their price objective on Telus Digital from $3.00 to $3.40 and gave the company a "sector perform" rating in a report on Tuesday, June 17th. National Bank Financial cut Telus Digital from an "outperform" rating to a "sector perform" rating and set a $4.00 price objective on the stock. in a research report on Monday, July 21st. National Bankshares cut shares of Telus Digital from an "outperform" rating to a "sector perform" rating and boosted their target price for the company from $3.50 to $4.00 in a research report on Monday, July 21st. Finally, BMO Capital Markets lowered their price target on shares of Telus Digital from $4.50 to $3.00 and set a "market perform" rating on the stock in a research report on Monday, May 12th. Ten analysts have rated the stock with a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $3.69.

Telus Digital Stock Up 1.7%

Shares of NYSE:TIXT traded up $0.06 during mid-day trading on Monday, reaching $3.76. 44,295 shares of the stock were exchanged, compared to its average volume of 564,192. The stock's 50 day simple moving average is $3.62 and its 200-day simple moving average is $3.18. Telus Digital has a one year low of $2.13 and a one year high of $4.60. The company has a market cap of $1.04 billion, a P/E ratio of -2.70 and a beta of 0.90. The company has a quick ratio of 0.86, a current ratio of 0.84 and a debt-to-equity ratio of 0.85.

Telus Digital (NYSE:TIXT - Get Free Report) last posted its quarterly earnings results on Friday, August 1st. The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.01. The firm had revenue of $711.33 million for the quarter, compared to analyst estimates of $660.87 million. Telus Digital had a positive return on equity of 1.99% and a negative net margin of 14.09%. As a group, equities research analysts predict that Telus Digital will post 0.32 EPS for the current year.

Institutional Investors Weigh In On Telus Digital

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Telus Digital in the 2nd quarter valued at $169,000. Scheer Rowlett & Associates Investment Management Ltd. grew its position in Telus Digital by 2.5% in the second quarter. Scheer Rowlett & Associates Investment Management Ltd. now owns 3,667,490 shares of the company's stock valued at $13,394,000 after acquiring an additional 87,750 shares during the last quarter. QV Investors Inc. raised its stake in Telus Digital by 25.8% during the second quarter. QV Investors Inc. now owns 7,614,325 shares of the company's stock worth $27,623,000 after acquiring an additional 1,561,690 shares in the last quarter. Cardinal Point Capital Management ULC bought a new position in shares of Telus Digital in the second quarter worth about $386,000. Finally, FNY Investment Advisers LLC bought a new position in shares of Telus Digital in the second quarter worth about $181,000. 59.55% of the stock is currently owned by institutional investors.

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.