TELUS Upgraded to Buy with $16 Target, $7B Monetization Pipeline and 12.1% Yield
Bank of America upgraded TELUS to Buy and raised its price target to $16 from $14.50, citing $7 billion in monetization opportunities and a 12.1% dividend yield. The firm highlighted accelerated deleveraging—including a 1.26 billion CAD debt reduction from a tower partnership—and a CEO transition effective July 1.
1. Analyst Upgrade and Price Target Revision
Bank of America upgraded TELUS to a Buy rating and increased the price target from $14.50 to $16, reflecting renewed confidence in the company’s earnings trajectory and valuation support. The adjustment factors in anticipated improvements in cash flow and strategic execution under upcoming leadership.
2. Monetization and Deleveraging Initiatives
TELUS has identified roughly $7 billion in asset monetization opportunities, including potential partnerships and spin-offs within its health division. A recent tower partnership with La Caisse reduced net debt by 1.26 billion CAD, advancing the company toward its goal of a 3.0x net debt-to-adjusted EBITDA ratio by year-end 2027.
3. CEO Transition and Dividend Yield
Effective July 1, 2026, Victor Dodig will assume the CEO role, succeeding Darren Entwistle and bringing fresh strategic direction. TELUS continues to reward shareholders with a quarterly dividend of CAD 0.4184 per share, representing a 12.1% yield, as it balances capital returns with leverage reduction.