Analyst Note| Matthew Dolgin, CFA |
Telus had a strong first quarter, with revenue and EBITDA in line with our expectations and tracking our full-year forecast. Consistent with Telus’ recent track record, the firm added more new wireless and broadband customers during the quarter than any of its major peers, but because Telus does not separately disclose prepaid and postpaid wireless customers, a granular comparison is not possible. The only change to the company’s full-year outlook is its expectation for capital spending to be CAD 750 million higher than it originally anticipated due to an acceleration of fiber and 5G network buildouts, which means free cash flow will be reduced by that amount. We’re maintaining our CAD 29 fair value estimate and believe the stock is mildly undervalued.