Q: Telus back to 2014 valuations,wow ! Would a rational recommendation be a " hold" if oversold, a "sell" if at high risk ? any other suggestion + point of vue shall be appreciated ..
5i Research Answer:
Following the BCE dividend cut, and a couple of broker downgrades, investors (and the media) have now taken sight on Telus. But we would note it raised its dividend last week (by a tiny amount). We have comments posted on the sustainability. We are at the point now where many 'expect' a cut, and of course the price has changed accordingly. The stock is down 2.5% this year. While no dividend is guaranteed, we do not see a cut as imminent. The company may sell or spin out its health division, and there have been layoffs, and the company is trying to align costs better. It bears watching, but we would not consider it a sell today.