TELUS Corp. (T:CA) — CIBC maintained its Neutral rating and lowered its price target to C$14.00 from C$15.00, a 6.7% reduction. The revision signals a more conservative valuation outlook while leaving the recommendation unchanged.
TELUS’s investment outlook centres on stabilizing earnings and strengthening its balance sheet. Second-quarter adjusted EBITDA declined 2% to C$1.8 billion, while free cash flow increased 2% to C$545 million. The company also recorded a C$2.1 billion non-cash impairment related to TELUS Digital, highlighting challenges in that business. Management reduced the quarterly dividend by 55% to C$0.1875 per share, directing the resulting savings toward debt reduction. Net debt to adjusted EBITDA stood at 3.5 times, with a target of approximately 3.0 times or lower by the end of 2028 supports deleveraging, but reduces the stock’s income appeal. A stronger investment case would require improving operating earnings, sustained free cash flow and measurable debt reduction. Wireless pricing competition, financing costs and TELUS Digital’s performance remain important factors to monitor.
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