Telus International (TIXT:CA) (TIXT)
Telus International had its 12 month target price cut by Scotiabank to $3 from $5, as analysts flagged concerns about the company’s near-term prospects amid challenging macroeconomic conditions. These headwinds—ranging from slower global growth, tightening corporate IT budgets, and broader geopolitical uncertainty—are expected to weigh on demand for Telus International’s digital customer experience and IT outsourcing services.
Scotiabank’s revised target reflects a more cautious stance on the company’s ability to maintain growth and profitability in a volatile environment. Telus International, which serves clients in sectors such as technology, financial services, and e-commerce, is particularly sensitive to discretionary IT spending, which tends to be among the first cut during downturns. In addition, persistent inflation and higher interest rates could squeeze margins and delay new contract wins or renewals.
While Telus International continues to pursue long-term growth in AI-driven services and digital transformation, Scotiabank’s downgrade suggests investors may need to brace for slower revenue growth or margin pressure in the near term, particularly if economic uncertainty lingers.
Stock Forecast & Analysis
Telus International Inc. is currently navigating a challenging phase, with mixed signals emerging from both analysts and technical indicators. Based on forecasts from six analysts, the average 12-month target price for the stock is CAD 5.39, suggesting a notable upside from its last closing price of CAD 3.47. However, the average analyst rating is “Hold,” reflecting cautious sentiment amid macroeconomic uncertainty and industry-specific pressures.
Despite this lukewarm consensus, Stock Target Advisor’s analysis remains “Bullish,” supported by 11 positive signals—such as valuation attractiveness or potential earnings recovery—against 4 negative signals, which could relate to volatility, debt levels, or operational risks.
The stock’s recent price action underscores this volatility. TELUS International has gained +5.47% over the past week, signaling some short-term buying interest, but this follows a -9.87% drop over the past month and a staggering -69.26% decline over the last year, indicating substantial long-term underperformance. These trends highlight the company’s struggle to meet investor expectations and navigate macroeconomic pressures like slowing global IT demand, inflation, and elevated interest rates.
In light of these dynamics, TELUS International appears to offer potential for recovery if macro conditions stabilize or growth reaccelerates, but the stock remains high-risk and may be best suited for investors with a high tolerance for volatility and a long-term outlook.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
