TU

Financial Barriers for Students: A recent report indicates that 75% of students face financial challenges in pursuing post-secondary education, with nearly one-third at risk of dropping out due to these pressures.

Together for Tomorrow Gala: The TELUS Friendly Future Foundation's upcoming gala on June 12, 2025, aims to raise funds for the TELUS Student Bursary program, which has already supported over 1,000 students with more than $4 million in bursaries since its inception.

TELUS Financial Strategy: TELUS is exploring the sale of a minority stake in its wireless tower portfolio to strengthen its balance sheet and enhance financial flexibility for debt reduction, aiming for a leverage ratio of 3 times net debt to EBITDA by 2027.

Market Reaction: Following this announcement, TELUS shares experienced a slight increase of 0.42% in extended trading.

TELUS Financial Strategy: TELUS is exploring the sale of a minority stake in its wireless tower portfolio to strengthen its balance sheet and enhance network operations, with plans to use proceeds for debt reduction.

Commitment to Growth: The company emphasizes its commitment to sustainable growth and transparency, while actively considering various monetization opportunities to support operational and financial performance.

Worst Performing Stocks: Ten large-cap stocks, including KE Holdings and Reddit, Inc., experienced significant declines last week, with KE Holdings dropping 15.38% after a downgrade by UBS.

Market Reactions: Other notable declines included Incyte Corporation down 8.75% due to disappointing clinical trial results, and XPeng Inc. falling 8.13% after missing earnings expectations.

Telus Downgrade: Bank of America downgraded Telus from "buy" to "neutral," citing challenges such as unsustainable leverage and a dividend exceeding free cash flow, leading to a 5% drop in stock prices on both the Toronto and New York exchanges.

Revised Forecasts: The firm reduced Telus' dividend growth forecast from 7% to 4%, lowered its price target, and highlighted the need for faster growth and asset monetization to meet future financial targets.

TELUS and NVIDIA Partnership: TELUS has become the first North American service provider to partner with NVIDIA, launching Canada's Sovereign AI Factory in Quebec, which will provide businesses with access to advanced AI technology while ensuring data security within Canadian borders.

Sustainable AI Infrastructure: The facility will utilize TELUS' renewable energy-powered PureFibre network and is designed to be highly energy-efficient, supporting local AI development and innovation while adhering to Canada's privacy regulations and promoting economic competitiveness.

Analyst Ratings: RBC Capital analyst Drew Mcreynolds has maintained a Buy rating on Telus with a price target of C$25.00, while the current analyst consensus is a Moderate Buy with an average price target of $15.87.

Insider Activity and Market Performance: Positive corporate insider sentiment has been noted for Telus, with an increase in insiders buying shares, and the company's market cap stands at $23.34B with a P/E ratio of 31.53.

Partnership Expansion: MCE Systems is expanding its partnership with TELUS to integrate generative AI into the Mobile Klinik Device Checkup app, following a successful pilot that significantly improved user engagement and retail visit intent.

Business Impact: The deployment of generative AI has led to notable increases in customer interactions, including a 4x rise in chatbot-guided engagement and a 3x increase in promotional offer actions, demonstrating its potential to enhance customer experiences and drive business results.

Analyst Rating Update: Scotiabank analyst Maher Yaghi has increased the price target for Telus (TU) from C$22.50 to C$23.50 while maintaining an Outperform rating on the shares.

Company Performance Highlights: Telus reported strong Q4 2024 results with an EPS of C$0.25, slightly up from C$0.24 last year, and anticipates a 3%-5% increase in adjusted EBITDA for FY25.

Leadership Changes at Neumora Therapeutics: Neumora Therapeutics has appointed Paul L. Berns as CEO and chairman effective February 14, 2025, while current President and CEO Henry Gosebruch will depart the company.

New Executive Team: Alongside Berns, Joshua Pinto will become president, Bill Aurora will serve as chief operating and development officer, and Michael Milligan will take on the role of chief financial officer.

Magnite (MGNI) Performance: Analyst Jason Kreyer maintains a Buy rating on Magnite, with the stock currently near its 52-week high and an analyst consensus of Strong Buy, targeting a price of $19.80.

Telus (TU) Rating: Canaccord Genuity's Aravinda Galappatthige holds a Hold rating on Telus, setting a price target of C$20.75, while the overall analyst consensus is Moderate Buy with a target of $15.69.

Financial Performance Overview: TELUS Digital reported stable operating performance in Q4 2024 with revenue of $691 million, a net loss of $54 million, and an adjusted EBITDA of $103 million. The company added 55 new clients in 2024 and expanded services with existing clients, despite facing challenges such as pricing pressures and competition.

Future Outlook: For 2025, TELUS Digital anticipates approximately 2% organic revenue growth, targeting an adjusted EBITDA of around $400 million and an adjusted diluted EPS of about $0.32, while continuing to invest in operational efficiencies and product development to support growth.

Financial Outlook for FY25: The company anticipates a revenue increase of 2%-4%, with free cash flow projected at $2.15 billion and capital expenditures at $2.5 billion, supported by a healthy balance sheet and liquidity of approximately $2.9 billion.

Growth Strategy and Market Position: The firm aims for sustainable growth through strong EBITDA performance, strategic asset monetization, and a focus on maintaining a low net debt to EBITDA ratio, despite competitive market conditions.

Market Performance: EnLink Midstream LLC and TELUS Corp. saw significant pre-market gains of 6.3% and 5.9%, respectively, while several other companies also posted increases; however, Vertiv Holdings LLC and Nebius Group N.V. experienced notable declines of over 15%.

Broader Market Trends: S&P 500 futures were down 2.36%, with declines in major indices both in the U.S. and overseas, including a drop in Brent crude oil and gold futures, as well as a decrease in Bitcoin value.

Canadian Dividend Stocks Overview: There is a renewed interest in Canadian dividend stocks, particularly as short-term interest rates decline, with expectations that investors may redirect approximately $220 billion into these equities, especially in sectors like utilities and telecommunications.

TELUS Corporation Highlights: TELUS Corporation has shown resilience despite a 20% decline over the past year, reporting strong earnings and maintaining a quarterly dividend of C$0.4023 per share, marking its 27th consecutive year of dividend growth, making it one of the top Canadian dividend stocks for income investors.

Price Target Adjustments: National Bank has lowered its price target for Telus (TU) to C$21 from C$22, maintaining a Sector Perform rating on the shares. Other firms have also adjusted their price targets for Telus downward.

Analyst Recommendations: Various analysts have provided mixed ratings and price target changes for Telus, with some downgrading their outlook while others maintain equal weight or sector performance ratings.

Market Performance: Silgan Holdings Inc. and PennyMac Financial Services Inc. saw significant pre-market gains of 8.4% and 5.1%, respectively, while Viking Therapeutics Inc. and IonQ Inc. experienced declines of 6.1% and 6.0%. S&P 500 futures rose by 0.31%, indicating a positive outlook for the upcoming trading session.

Commodities and Global Markets: Brent crude oil and gold futures showed slight increases, while Bitcoin fell by 1.69%. In global markets, European stocks were up in afternoon trading, contrasting with mixed performances in Asia, where Japan's NIKKEI 225 Index declined and China's Shanghai Composite Index rose.

Telecom Market Growth: The global telecom services market, valued at $1.80 trillion in 2022, is expected to grow at a 6.2% CAGR through 2030, driven by advancements in 5G technology and increasing demand for high-speed data and managed services.

Telus Corp. Performance: Telus Corp. ranks 11th among the best telecom stocks, reporting strong customer growth and maintaining low churn rates, while focusing on long-term sustainability over short-term gains.

Upcoming Ex-Dividend Dates: New Jersey Resources Corp, HP Inc, and TELUS Corp will trade ex-dividend on 12/11/24, with respective dividends of $0.45, $0.2894, and $0.4023 payable on 1/2/25.

Dividend Yield Expectations: Estimated annual yields based on recent stock prices are 3.66% for NJR, 3.20% for HPQ, and 10.24% for TU, indicating potential stability in their dividend payments despite market fluctuations.

TELUS Indigenous Reconciliation Report: TELUS released its sixth annual Indigenous Reconciliation and Connectivity Report, showcasing successful partnerships with Indigenous communities that have led to significant social, cultural, and economic advancements, including job creation, land restoration, and mental health support.

Commitment to Reconciliation: The report highlights TELUS's ongoing commitment to reconciliation through various initiatives, such as providing advanced broadband connectivity, supporting Indigenous youth education, and investing in Indigenous entrepreneurs, while also emphasizing the importance of mutual respect and collaboration.