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TD Securities Upgrades TELUS Corporation (TU) to Buy

May 10, 2013 7:47 AM EDT Send to a Friend
Get Alerts TU Hot Sheet
Price: $36.04 +0.70%

Rating Summary:
    9 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 15 | Down: 16 | New: 67
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TD Securities upgraded TELUS Corporation (NYSE: TU) from Hold to Buy with a price target of C$41.00 (from C$34.50).

"Interest rates do not seem to want to lift from their current historic lows, and the cyclical/resource sectors in Canada seem to be showing no signs of life, so we have to face the reality that investors are likely going to continue to covet high-yielding telco names," analyst Vince Valentini explains in his upgrade note.

He continued, "We have also seen a lot of time pass with no negative developments on the competitive or regulatory fronts in the wireless industry, so it seems unlikely that the favourable momentum in results from this sector will go away anytime soon. Consequently, we are increasing our wireless target multiples to 7.5x EBITDA from 7.0x for both BCE and TELUS."

The firm raised their forecasts following Q1 results, and have increased their wireline segment target multiple to 7.0x from 6.0x to reflect the above-average growth prospects that we see for the next few years.

For an analyst ratings summary and ratings history on TELUS Corporation click here. For more ratings news on TELUS Corporation click here.

Shares of TELUS Corporation closed at $36.93 yesterday.




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