Insights

Here’s why the Telstra (ASX:TLS) share price is up 33% so far in 2021

Telstra shares are having a great year…
The post Here’s why the Telstra (ASX:TLS) share price is up 33% so far in 2021 appeared first on The Motley Fool Australia. –

The Telstra Corporation Ltd (ASX: TLS) share price has accelerated over the past 11 months, up 33%. This comes as Australia’s largest telco provider has managed to navigate its way around COVID-19 and the NBN headwind.

At the end of Friday, the telco’s shares recorded gains of 1.27% to $3.98.

What’s driving Telstra shares upwards in 2021?

Without a doubt, the Telstra share price has been on fire this year, buoyed by upbeat investor sentiment.

The company’s mobile division has been a standout performer as Australians continue to work from home. In addition, management’s focus on cutting down costs across the business has had a positive effect on its share price.

Telstra’s acquisition of Pacific-based telco, Digicel is also expected to provide ample returns with relatively low risk. The telco paid US$270 million while the Australian government chipped in the majority of the $1.6 billion price tag.

The deal is anticipated to be earnings per share accretive, more than a share buyback.

More recently, the company signed a significant renewal contract with the Australian Department of Defence.

Extended for 5-years and worth over $1 billion, the agreement will see Telstra deliver critical network and telecommunications services.

It’s the largest ever customer contract signed by Telstra Enterprise and will aid the business in returning to growth.

Are Telstra shares a buy?

A couple of brokers have weighed in on the company’s share price last month.

Australian leading investment firm, Morgans raised its price target for Telstra shares by 2.5% to $4.55.

Analysts at Goldman reaffirmed their outlook on Telstra shares as a ‘buy‘, putting a price target of $4.40. Based on the current share price, this implies an upside of around 10%.

Goldman Sachs remains bullish following Telstra’s T25 update, which highlighted a number of initiatives to boost future growth.

Telstra share price snapshot

In 2021, the Telstra share price has gained above 30%, reaching pre-pandemic levels. If the company’s share price can push above $4.05 today, it will be at a multi-year high from 2017.

Telstra commands a market capitalisation of around $47.34 billion, making it the 10th largest company on the ASX.

The post Here’s why the Telstra (ASX:TLS) share price is up 33% so far in 2021 appeared first on The Motley Fool Australia.

Should you invest $1,000 in Telstra right now?

Before you consider Telstra, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Telstra wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Here are the 3 most heavily traded ASX 200 shares this Friday

Here are the 3 most heavily traded ASX 200 shares on Thursday

Here’s what happened to the Telstra (ASX:TLS) share price in October

Telstra (ASX:TLS) share price struggles despite Department of Defence contract renewal

2 excellent ASX dividend shares named as buys

Motley Fool contributor Aaron Teboneras owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!