T: Quantum-Safe Network And AI Infrastructure Will Support Long-Term Opportunity

Analysts have modestly raised their price target on TELUS to approximately $23.06 from $22.97, reflecting slightly improved profit margin expectations that more than offset a small reduction in long term revenue growth assumptions.

What's in the News

• TELUS launched a Quantum Safe VPN service using post quantum cryptography to protect government and business clients against future quantum enabled cyber threats, integrated with its Managed Next Generation Firewall platform (Product Related Announcements).
• The company broke ground on a TELUS Living mixed use rental development at the former Point Grey phone exchange in Vancouver, part of a broader plan to deliver more than 3,000 new rental homes across British Columbia and expand to Alberta and Quebec (Client Announcements).
• TELUS and Railtown AI are deploying advanced agentic software development tools through TELUS Sovereign AI Factory, giving Canadian developers secure domestic AI compute and keeping code and data under Canadian jurisdiction (Client Announcements).
• Through a partnership with League, TELUS Sovereign AI Factory is powering an AI driven healthcare platform that keeps sensitive health data within Canada while enabling more personalized and efficient patient care (Client Announcements).
• TELUS commenced installation of a 125 km submarine fibre optic cable between Sept Îles and Sainte Anne des Monts to create a redundant backbone for Quebec coastal communities, enhancing network resilience against outages and extreme weather (Business Expansions).

Valuation Changes

• The fair value estimate has risen slightly to approximately CA$23.06 from CA$22.97, reflecting modestly higher expected profitability.
• The discount rate has increased marginally to about 6.94 percent from 6.92 percent, implying a slightly higher required return on equity.
• The revenue growth assumption has fallen slightly to roughly 3.45 percent from 3.63 percent, indicating more conservative long term top line expectations.
• The net profit margin forecast has improved modestly to around 6.62 percent from 6.54 percent, supporting the higher fair value despite slower growth.
• The future P/E multiple has edged down fractionally to about 31.1x from 31.2x, suggesting a nearly unchanged valuation multiple applied to future earnings.