Analyst Note| Matthew Dolgin, CFA |
Like its major peers Rogers and BCE, Telus reported very strong wireless results in the third quarter, marking a distinct turn for a business that was hit hard by the pandemic. Telus also continued to post impressive fixed-line results, which is the key reason it has been one of the Canadian telcos we’ve favored. While the fiber buildouts of phone companies Telus and BCE have led to share gains in their respective regions, something we expect to continue, their stocks aren’t as attractive as Rogers’, in our view, which has recently dropped for reasons we see as independent of future operating performance. Telus’ strong performance is in line with our expectations, and we are raising our fair value estimate to CAD 31 from CAD 29.