01:48 PM EST, 01/14/2025 (MT Newswires) -- 2024 was a tough year for Canadian telecommunications stocks, notes BofA. Robust subscriber growth was offset by falling prices, driven by higher competitive intensity across both wireless and wireline. As growth challenges have persisted, balance sheet strength and the sustainability of capital returns to shareholders are increasingly in focus, BofA reports.

Looking ahead to 2025, BofA believes investors will remain cautious on the sector and gravitate to stocks that can deliver free cash flow growth, delever, and sustain steady capital returns.

Government cuts to immigration will have a negative impact on wireless providers. Rogers is the wireless market share leader in the immigration segment and would be the most impacted, BofA says.

None-core asset monetization will also continue to be topic for the telcos in 2025.

Top pick for 2025 is Telus ( TU ) (Outperform, $24 target). "We expect Telus ( TU ) to report strong free cash flows as it ramps-up copper decommissioning, executes on its real-estate monetization program, and continues to load subscribers on its fiber network while navigating changes to the immigration landscape."

Rogers has been downgraded to Neutral from Buy (target $55), and BCE to Underperform from Neutral (target $36).

Price: 32.30, Change: -1.08, Percent Change: -3.24