TELUS (TSX:T) Partners With FreeTelecom To Launch Innovative Dual Plan

TELUS (TSX:T) recently announced a partnership with FreeTelecom to launch the FreeTelecom Dual Plan, targeting the connectivity needs of Korean travelers in Canada. This initiative, along with the introduction of Wi-Fi 7, aligns with TELUS's continued push for technological advancement. Despite these efforts, TELUS's share price movement of 2% last month did not significantly deviate from broader market trends, which saw gains of just under 2%, buoyed by rising market indices hitting all-time highs. TELUS's earnings report and dividend increase likely provided supportive context amid generally positive market conditions.

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The recent partnership between TELUS and FreeTelecom could bolster TELUS's revenue by enhancing service offerings for Korean travelers. This initiative aligns with TELUS's ongoing strategy to expand its broadband and digital health services, which are pivotal in driving recurring revenues and margin growth. Over the past five years, TELUS's total shareholder return, including dividends, was 21.89%. While this performance provides a positive long-term perspective, the company's 1-year return underperformed the Canadian market's 19.8% gain.

Despite the share price climbing by 2% last month, it remains closely aligned with the broader market trends. The current share price of CA$22.75 is slightly below the consensus analyst price target of CA$23.38. The modest discount suggests investors believe TELUS is fairly valued, considering its revenue and earnings growth projections. Analysts expect revenue to grow 3.6% annually for the next three years, supported by broadband and digital health expansion. However, competitive and regulatory pressures could impact these forecasts. The ongoing technological advancements, like the Wi-Fi 7 rollout, are expected to contribute positively but must overcome substantial execution challenges to significantly affect TELUS's valuation.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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