Deal will lift Telus returns

Article Excerpt

TELUS, $28.94, is a buy. The company (Toronto symbol T; Shares outstanding: 1.4 billion; Market cap: $40.7 billion; TSINetwork Rating: Above Average; Dividend yield: 4.9%; www.telus.com) sold shares of Telus International through an IPO in February 2021 at $25.00 U.S. a share. It still controls 72.43% of the voting power with 56.59% economic interest. Telus International (symbol TIXT on Toronto) operates call centres on behalf of over 600 corporate clients in 28 countries. It also helps them manage their computer systems and mobile apps. Telus International recently completed its $1.225 billion purchase of WillowTree, a designer and builder of websites and mobile apps for businesses. Its clients include Fox Broadcasting, CBC, PepsiCo, Anheuser-Busch InBev, Synchrony, Manulife and Marriott. Big acquisitions like that add risk. However, the purchase will increase Telus International’s annual revenue by about 6%. That’s a plus for the stock—and for parent Telus Corp. Telus Corporation is a buy. buy. …