TELUS (NYSE:TU) (TSE:T)‘s stock had its “sell” rating reissued by Zacks Investment Research in a report issued on Saturday.

According to Zacks, “TELUS faces stiff market competition, resulting in reduced subscriber addition. Its operating margins remain strained as cable TV operators move from phone services based on ‘circuit-switched’ technology to less costly Voice-over-Internet Protocol. High capital investments for network upgrades further reduce the profitability of the company. The Zacks Consensus Estimate for 2018 earnings has moved down from $2.25 per share to $2.15 per share year to date, representing bearish investor sentiment for the stock. The efforts to offset substantial capital expenditure for upgrading the network infrastructure by raising fees have reduced demand, as customers tend to switch to lower-priced carriers. The stock has underperformed the industry in the past three months on an average. However, TELUS continues to benefit from increased penetration of smartphones, increasing wireless data services and growing wireline fiber optic networks.”

A number of other equities analysts have also commented on the stock. Barclays restated a “buy” rating and issued a $40.00 price objective on shares of TELUS in a research report on Sunday, November 11th. TD Securities restated a “buy” rating on shares of TELUS in a research report on Friday, November 9th. Desjardins restated a “buy” rating on shares of TELUS in a research report on Sunday, October 21st. Finally, Scotiabank lowered shares of TELUS from an “outperform” rating to a “sector perform” rating in a research report on Wednesday, October 10th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and five have assigned a buy rating to the stock. TELUS presently has a consensus rating of “Hold” and an average target price of $45.50.

TU opened at $35.48 on Friday. The stock has a market capitalization of $21.22 billion, a PE ratio of 17.48, a price-to-earnings-growth ratio of 2.05 and a beta of 0.80. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.83 and a quick ratio of 0.76. TELUS has a twelve month low of $33.64 and a twelve month high of $38.50.

TELUS (NYSE:TU) (TSE:T) last released its quarterly earnings data on Thursday, November 8th. The Wireless communications provider reported $0.57 EPS for the quarter, beating analysts’ consensus estimates of $0.54 by $0.03. TELUS had a net margin of 10.82% and a return on equity of 17.51%. The company had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.59 billion. During the same period last year, the business earned $0.66 earnings per share. TELUS’s revenue was up 10.9% compared to the same quarter last year. On average, equities research analysts anticipate that TELUS will post 2.16 EPS for the current fiscal year.

Institutional investors have recently made changes to their positions in the business. Glassman Wealth Services bought a new stake in TELUS during the third quarter valued at approximately $110,000. Riverhead Capital Management LLC raised its stake in shares of TELUS by 95.7% during the third quarter. Riverhead Capital Management LLC now owns 4,500 shares of the Wireless communications provider’s stock worth $164,000 after acquiring an additional 2,200 shares in the last quarter. Chicago Partners Investment Group LLC raised its stake in shares of TELUS by 100.0% during the third quarter. Chicago Partners Investment Group LLC now owns 4,700 shares of the Wireless communications provider’s stock worth $160,000 after acquiring an additional 2,350 shares in the last quarter. PNC Financial Services Group Inc. raised its stake in shares of TELUS by 53.6% during the second quarter. PNC Financial Services Group Inc. now owns 5,809 shares of the Wireless communications provider’s stock worth $207,000 after acquiring an additional 2,026 shares in the last quarter. Finally, Verition Fund Management LLC purchased a new position in shares of TELUS during the third quarter worth approximately $245,000. Institutional investors and hedge funds own 50.16% of the company’s stock.

TELUS Company Profile

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications products and services in Canada. It operates through Wireless and Wireline segments. The company's telecommunications products and services comprise wireless and wireline voice and data services; data services, including Internet protocol; television services; hosting, managed information technology, and security and cloud-based services; healthcare solutions; business process outsourcing; and security solutions.

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Analyst Recommendations for TELUS (NYSE:TU)

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