Telus (NYSE: TU) Stock Performance: Analyst Lowers Price Target Amidst Q2 Challenges

• Telus (NYSE: TU) has seen its stock fall significantly, leading Barclays to lower its price target to $11.00.
• The Canadian telecommunications company reported challenging Q2 2026 results, with adjusted earnings per share down 27% to C$0.16 and net income decreasing 26%.
• In response to these headwinds, Telus announced a transformation plan, including a 55% dividend cut to C$0.19 per share, and a revised financial outlook.

Telus (NYSE: TU) is a major Canadian telecommunications company that provides a range of services, including mobile and internet. Over the past year, Telus's stock has fallen 33.6%. This stock performance is significantly below the Zacks Diversified Communication Services industry, which saw a 3.2% decrease during the same period.

Reflecting these challenges, Barclays analyst Lauren Bonham lowers the price target for Telus to $11.00 from a previous target of $12.00. When this new price target was announced, the stock was trading at $9.59 per share. This new target suggests a potential upside of approximately 14.7% from that price.

The analyst's adjustment follows the company's difficult second-quarter 2026 results. As highlighted by Zacks, Telus's adjusted earnings per share fell 27% year-over-year to C$0.16. Adjusted net income also decreased by 26% to C$254.00 million, while operating revenues and other income saw a 3% decline to C$4.93 billion.

These results are driven by weaker performance in the Telus Digital division, where revenue fell 6% and a key profit metric, EBITDA, plunged 20%. A substantial C$2.14 billion impairment charge, which is a reduction in the recorded value of an asset, also contributed to a C$1.83 billion net loss.

In response, Telus announced a new transformation plan under its new CEO. This plan includes cutting its quarterly dividend by 55% to C$0.19 per share and lowering its financial outlook for 2026. The company aims to refocus on its core operations to strengthen its financial position.