Analyst Note| Matthew Dolgin, CFA |
Telus reported mixed fourth-quarter results, with sales slightly beating FactSet consensus estimates but EBITDA missing. Telus has not been immune to the telecom struggles that have pervaded the Canadian industry amid the pandemic, particularly in wireless sales as roaming and overage revenue have been severely depressed. However, even excluding revenue from recent acquisitions, we estimate the company grew the top line in the fourth quarter and for the full year due to its diversified wireline segment. While we don’t think Telus will see the same business and stock turnaround as peers when the pandemic ends as the firm has held up better than the others, we still see the stock as mildly undervalued relative to our CAD 29 fair value estimate.