Will TELUS’ (TSX:T) Fibre and Health Push Reshape Its Long-Term Investment Story?

• In recent days, TELUS and F3 Networks announced that TELUS PureFibre services will soon reach 95% of Sylvan Lake’s homes and businesses following F3’s $40 million investment, alongside TELUS Health’s launch of mobile imaging services in Vancouver’s Downtown Eastside.
• These developments highlight TELUS’s simultaneous focus on network expansion, digital innovation, and social impact, underscoring its broader commitment to technological advancement and community well-being.
• We’ll explore how TELUS’s accelerated fibre rollout and digital inclusion efforts could influence its long-term investment narrative.

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TELUS Investment Narrative Recap

Owning TELUS means believing in resilient, utility-like cash flows from connectivity services and a growing digital health presence, balanced against high capital intensity and intense competition. Recent network and service announcements, including PureFibre expansion and health technology rollouts, do not materially alter the primary short-term catalyst, broadband and wireless ARPU trends, or mitigate the key risk of elevated debt and capital spending.

Of the latest news, the $40 million partnership extending PureFibre to Sylvan Lake stands out, strengthening the foundation for future broadband revenue and enhanced service offerings as TELUS advances its multi-year network investment plan. This aligns closely with core growth drivers while sector competition and margin pressures persist.

But while the expansion creates potential, investors should also weigh the impact of persistent capital intensity and the possibility that…

Read the full narrative on TELUS (it’s free!)

TELUS’ narrative projects CA$22.7 billion revenue and CA$1.5 billion earnings by 2028. This requires 3.6% yearly revenue growth and a CA$534 million earnings increase from the current CA$966.0 million earnings.

Uncover how TELUS’ forecasts yield a CA$23.38 fair value, a 7% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s 9 individual fair value estimates for TELUS span from CA$17.70 to CA$58.14, reflecting a broad spectrum of opinions on potential upside. With competition remaining fierce and ongoing high investment needs, it’s clear that investors see very different scenarios playing out for the company’s future performance.

Explore 9 other fair value estimates on TELUS – why the stock might be worth over 2x more than the current price!

Build Your Own TELUS Narrative

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

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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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