The Financial Post reports in its Tuesday edition TD Securities upgraded its rating on the telco group for the first time in two years Monday. The Post's John Shmuel, writing in Trading Desk, says wireless companies Telus, Rogers and BCE are the main reason for the upgrade from underweight to market weight. TD had earlier feared that major regulatory decisions and a pair of spectrum auctions would hurt the sector. "The main headline risks that we had feared at the beginning of the year have now passed, and one could argue that any related risks are now more properly baked into forecasts and valuations for the sector," TD analysts said in a note to clients. Those fears translated into telecom stocks tanking this year. The sector is down 7 per cent, compared with an average return of about 4 per cent for the S&P/TSX composite index. TD said the pullback has also helped to make the stocks cheaper for investors. "We no longer see enough valuation risk to justify an Underweight rating for the sector," the analysts said. TD is not to raise its rating for the 15 telco stocks. TD currently has Quebecor and Sirius XM Canada Holdings as its two top picks in the Canadian telco space.