11:19 AM EDT, 06/13/2025 (MT Newswires) -- Telus Digital target has been raised to US$4 (from US$3.60) at Stifel Canada after the company received an unsolicited take-out bid from Telus ( TU ) to fully acquire it at US$3.40/share.

Analyst Suthan Sukumar notes that while Telus ( TU ) in the past said it had no interest in buying back Telus Digital, the latest announcement wasn't a total surprise. "In our view, the opportunity for Telus ( TU ) to insource Telus Digital at a more favourable valuation and restructure it to focus on higher-growth, higher-margin business, while leveraging its proprietary AI capabilities to drive greater automation/efficiencies, could be highly accretive."

However, with strong and sustaining relationships with key customers like Google and Meta, Sukumar sees Telus Digital as an attractive asset in light of a consolidating industry, so he would not rule out a competing bid.

Price: 4.92, Change: -0.05, Percent Change: -1.11