UPDATE 1-UBS downgrades Telus to neutral

(Recasts, adds details)

Sept 5 (Reuters) - UBS downgraded Telus Corp (T.TO) to
"neutral" from "buy" and kept its short-term "sell" rating on
the stock to reflect the risk of more than one new entrant in
western Canada and the potential spill-over effect on access
lines.

The brokerage also cut its price target on the company and
its rival, Rogers Communication Inc (RCIb.TO), as it expects
privately held Globalive Communications Corp to launch services
in major markets that may lead to re-pricing of services.

Manitoba Telecom Services Inc's (MBT.TO) price target was
also trimmed by the brokerage to show a higher net debt
position, and it said the company would be a likely investor in
Globalive.

UBS said it prefers Quebecor Inc (QBRa.TO) based on its
attractive valuation and potential to create value from its
wireless investment.

Following is the list of rating and price target changes on
these companies:
Company New Target Previous target Rating
Rogers Comm C$47 C$51 Buy
Telus Corp C$41 C$43 Neutral
MTS C$46 C$48 Buy
Quebecor Inc C$38 C$38 Buy
(Reporting by Shrutika Verma in Bangalore; Editing by Anil
D'Silva)