TELUS (TU) Stock Forecast & Price Target

TELUS
Bull Case

Here are some ways that investors could benefit from investing in TELUS Co.:

• TELUS Co. is currently trading at $8.48, which is near its 52-week low of $8.40, offering a potential entry point for value-oriented investors who believe the market has overreacted to recent negative news.
• The company has implemented a 55% dividend reduction and terminated its dividend reinvestment plan discount, a move expected to preserve approximately C$2.7 billion in capital through 2028, which will be directed toward reducing leverage and strengthening the balance sheet.
• Management is focusing on a simplified portfolio centered on core telecommunications and AI data infrastructure, pausing all mergers and acquisitions to improve capital discipline and profitability, which may lead to more efficient capital allocation.
• TELUS Co. is targeting a leverage ratio of 3.0 times or lower by 2028, and once this target is met, the company could evaluate dividend increases or share repurchases, providing potential future upside for shareholders.
• The company is seeing a more stable competitive environment in its wireless operations, with three consecutive quarters of ARPU growth, indicating improving revenue per user and a shift toward more profitable customer additions.