Latest news with #TIXT
Business Insider
20 hours ago
- Business
- Business Insider
RBC Capital Reaffirms Their Hold Rating on TELUS International (CDA) (TIXT)
In a report released on July 9, Daniel Perlin from RBC Capital maintained a Hold rating on TELUS International (CDA), with a price target of $5.00. The company's shares closed yesterday at $3.75. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Perlin is an analyst with an average return of -9.6% and a 39.64% success rate. Perlin covers the Technology sector, focusing on stocks such as Affirm Holdings, Broadridge Financial Solutions, and Fidelity National Info. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for TELUS International (CDA) with a $3.92 average price target. TIXT market cap is currently $1.06B and has a P/E ratio of -9.41. Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TIXT in relation to earlier this year.
Yahoo
6 days ago
- Business
- Yahoo
TELUS International Acquires Gerent to Enhance Salesforce, AI-Driven Customer Experience Solutions
TELUS International (Cda) Inc. (NYSE:TIXT) is one of the cheap penny stocks to buy now. Towards the end of May, TELUS announced its acquisition of Gerent. Gerent is a US-based Salesforce-focused consultancy that delivers enterprise-scale implementation and integration projects, as well as agentic AI solutions. Following the acquisition, Gerent's full portfolio of services is now offered by TELUS Digital, and the Gerent brand is slated for retirement by the end of Q3 2025. Gerent is recognized as a Salesforce Summit Partner and supports 1,800 certifications across the entire Salesforce product suite. Its workforce has completed 1,000+ Salesforce projects globally by now. The company has also maintained a strong customer satisfaction score of 4.9 out of 5.0. A robotic process automation system in a modern datacenter. The move aligns with TELUS Digital's fusion-based growth strategy, which combines talent with advanced technologies to create future workforces. These workforces will integrate AI-enabled humans and autonomous AI agents to deliver smarter, faster, and more personalized CX at scale. TELUS International (Cda) Inc. (NYSE:TIXT) offers digital customer experience and digital solutions internationally. While we acknowledge the potential of TIXT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
03-07-2025
- Business
- Globe and Mail
Why Telus International shares may offer upside as a higher buyout offer looms
In a market where tech investors are increasingly searching for asymmetric risk-reward opportunities, Telus International (Canada) Inc. TIXT-T has emerged as an intriguing candidate. In June, 2025, Telus Corporation TU-N proposed to acquire the 42.6 per cent of Telus International – also known as Telus Digital – it doesn't already own for US$3.40 per share. However, Telus International's stock is currently trading at a premium to this offer, signalling market anticipation of a higher final price. Telus International offers a special situation: A solid floor supported by a credible acquisition offer, paired with a reasonable probability of a revised, higher bid. Telus International is a digital services and customer experience outsourcing firm with a presence in over 30 countries. It offers a combination of digital IT services, traditional business process outsourcing services, AI data annotation and content moderation – capabilities that support not only third-party clients such as Google, but also Telus Corp.'s T-T growing health care, agriculture and telecom divisions. Telus International's 2021 initial public offering on the Toronto Stock Exchange was one of the largest tech IPOs in the TSX's history, priced at US$25 per share. Since then, however, the stock has experienced a significant decline, a result of both broader market conditions and internal missteps. This precipitous drop in share price exemplifies what Benjamin Graham, the father of value investing, famously described as the 'manic-depressive' nature of Mr. Market, whose moods can swing wildly and often irrationally. Telecom giants taking action to address the debt elephant in the room David Berman: The question now facing telecom investors: Why bother? Telus International's underlying health isn't as bleak as the market might suggest. For 2025, the firm projects revenues of around US$2.7-billion and adjusted EBITDA of approximately US$400-million. After a period of macroeconomic challenges, the company's key markets are showing signs of recovery, which should lead to higher revenues and earnings going forward. Artificial intelligence also presents a significant opportunity as Telus International plays a key role in enabling AI solutions for its clients. From Telus Corp.'s perspective, full control of Telus International is strategically important. In a statement, Darren Entwistle, Telus Corp.'s CEO, said this transaction enables enhanced AI capabilities and SaaS transformation across its lines of business, including health care, agriculture, telecom and customer service. Telus Corp. has repeatedly emphasized the importance of digital transformation in its earnings calls which makes Telus International a 'must-have' asset, not merely a financial investment. Yet, Telus Corp.'s current offer significantly undervalues Telus International, proposing multiples of just 0.8 times revenue and 5.7 times adjusted EBITDA. These figures stand notably below valuations observed in comparable industry transactions. For instance, in May 2025, TaskUs, a close peer to Telus International, was taken private at 1.4 times revenue and nearly seven times adjusted EBITDA. Similarly, in August 2023, Majorel was acquired for 1.4 times revenue and eight times adjusted EBITDA. Opinion: Telus fails to deliver on Entwistle's IPO-based growth strategy We contend that a 7-8 times adjusted EBITDA multiple is more appropriate for Telus International. This is not only justified by recent peer transactions, but also by the fact that Telus International represents a higher-quality business than many of its direct peers. Telus International has a strong presence in the growing digital IT transformation segment, a capability significantly bolstered by its acquisition of WillowTree (at an estimated 20 times EV/EBITDA). Moreover, the prevailing cyclical upturn within the industry provides additional justification for a premium valuation. This situation is a bellwether for how Canadian companies manage the relationship between parent firms and publicly traded subsidiaries. If controlling shareholders can privatize undervalued assets with minimal oversight or resistance, it erodes confidence in the fairness of the market. Telus has long stood for excellence in Canadian telecommunications. Now, it has an opportunity – and an obligation – to extend that reputation to corporate governance. While Telus Corp. holds over 85 per cent of voting rights, the board of Telus International has established a special committee of independent directors to evaluate the proposal. Their fiduciary responsibility is to minority shareholders and not the parent company. The disparity in Telus International's valuation versus peers is also unlikely to go unnoticed, particularly by institutional shareholders or proxy advisory firms which have an increasing say on how minority shareholders vote their shares. For investors buying Telus International stock today, the downside is limited by the current US$3.40 takeout offer, which provides a soft floor. But if the board negotiates an improved offer – say to US$5.00-7.00, which would be more in line with peer EV/EBITDA multiples – investors potentially stand to make substantial gains. Telus International's current pricing reflects a special situation in transition – a deal that makes sense for the parent, but not yet for minority holders. Whether driven by the board's negotiation, shareholder advocacy or external pressure, the odds of a revised bid are meaningful – and that makes the stock worth a close look for investors with a taste for catalyst-driven value. Balkar Sivia is the founder and portfolio manager of White Falcon Capital Management Ltd. ( Disclosure: The author and the accounts he manages at White Falcon own shares in Telus International.
Yahoo
16-06-2025
- Business
- Yahoo
TELUS International (Cda) Inc. (TIXT) Surges 27% Following Buyout Proposal from TELUS Corporation
TELUS International (Cda) Inc. (NYSE:TIXT) is among the 10 Most Undervalued Stocks to Buy for Under $5. The company has received an unsolicited non-binding proposal from TELUS Corporation to buy out 100% of the outstanding multiple voting shares and subordinate voting shares not already owned by TELUS Corporation for $3.40 per share. A robotic process automation system in a modern datacenter. The proposal is subject to several conditions, including satisfactory due diligence, the negotiation of an acquisition agreement, and approval from key shareholders of TELUS International (Cda) Inc. (NYSE:TIXT). The completion of the transaction will also be subject to compliance with the security laws of Canada and the United States. TELUS International (Cda) Inc. (NYSE:TIXT) crafts and delivers unique solutions, including AI and content moderation, for global and disruptive brands. The company's shares surged by 26% on Thursday following the reports to cap off returns of nearly 27% for the week. While we acknowledge the potential of TIXT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
12-06-2025
- Business
- Reuters
Telus offers to fully own digital unit for greater control of AI capabilities
June 12 (Reuters) - Telus ( opens new tab said on Thursday it intends to acquire the shares in its listed digital services subsidiary it does not currently own, as the Canadian telecom firm seeks greater control of the unit's artificial intelligence capabilities. The company has offered $3.40 per share to acquire the shares it does not own in Telus Digital ( opens new tab, valuing the unit at $946.8 million, according to Reuters' calculation. Telus currently holds about 57% of the digital unit's outstanding shares directly and through its other units. This is a 15% premium to the last closing price of the subsidiary's U.S.-listed stock. U.S.-listed shares of the digital unit are down more than 24% this year, severely lagging the parent company whose U.S. listing is up nearly 19% this year. The move underscores Telus' push for more control of the digital unit, which helps businesses adopt AI and develop data strategies amid a worldwide push to harness the technology. "Our proposal to fully acquire Telus Digital reflects our belief that closer operational proximity... will enable enhanced AI capabilities and SaaS transformation across all lines of our business," Telus CEO Darren Entwistle said. Telus said last month it is investing more than C$70 billion ($51.40 billion) in Canada over the next five years to expand its network infrastructure in the country, which would be focused around launching two new AI data centers. Barclays is serving as Telus' financial advisor. ($1 = 1.3619 Canadian dollars)
