1445 ET - TD Cowen says it finds no credibility in analysis that suggests Telus International's free-cash-flow could impair the balance sheet and FCF outlook for parent company Telus. Analyst Vince Valentini says that Telus doesn't technically own 100% of the FCF from Telus International that gets fully consolidated, "but if one were to adjust then the impact on FCF yield and dividend payout ratios is minimal," he says. He figures it equates to about C$0.05 in FCF-a-share in both 2025 and 2026 estimates, which is less than 3% of TD Cowen's FCF/share estimate of C$1.80 in 2026. Telus fell nearly 5% Friday after BofA Securities downgrades shares to neutral from buy citing "unsustainable leverage" and a dividend yield greater than free-cash-flow, among other problems.(adriano.marchese@wsj.com)
(END) Dow Jones Newswires
March 24, 2025 14:46 ET (18:46 GMT)
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