Insights

Is the Telstra (ASX:TLS) share price a buy after its investor update?

Time to buy Telstra shares?
The post Is the Telstra (ASX:TLS) share price a buy after its investor update? appeared first on The Motley Fool Australia. –

The Telstra Corporation Ltd (ASX: TLS) share price will be one to watch on Tuesday.

This follows the release of the telco giant’s investor day presentation for its new T25 strategy this morning.

What is in the presentation?

While there was no new information included in the presentation, management has reiterated its growth targets for the coming years.

One of those targets is growing its underlying earnings per share by a compound annual growth rate in the high-teens during FY 2021 and FY 2025.

Supporting this growth will be management’s cost reduction plans and its 5G network. In respect to the former, Telstra is aiming to make $500 million of net fixed cost outs between FY 2023 and FY 2025 while still investing in its growth.

As for the latter, Telstra expects to provide ~95% of the Australian population with 5G coverage by FY 2025. Combined with its superior network, this is expected to underpin mobile services revenue growth.

Telstra’s CEO, Andy Penn, previously commented: “[The] announcement of T25 marks our transition from transformation to growth, from a strategy we had to do, to a strategy we want to do to focus on growth. It is a strategy that builds on the strong foundations we have built over the last three years and remains focussed on what matters most – our customers, our people, our shareholders and on supporting the creation of a vibrant digital economy for Australia.”

Is the Telstra share price in the buy zone?

Although the Telstra share price is up 33% in 2021, a number of brokers still see value in the company’s shares.

One of those is Goldman Sachs. It currently has a buy rating and $4.40 price target on its shares.

Based on the current Telstra share price of $4.00, this implies potential upside of 10% for investors. And if you include its forecast 16 cents per share fully franked dividend, the total potential return increases to 14%.

Goldman was pleased with Telstra’s T25 strategy and believes the company is well-placed for earnings and dividend growth in the coming years.

The post Is the Telstra (ASX:TLS) share price a buy after its investor update? 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

Telstra (ASX:TLS) share price edges lower amid new AI joint venture

Is another billion dollar pay day looming for Telstra (ASX:TLS) shareholders?

These 3 ASX 200 shares are topping the volume charts this Thursday

Why the Telstra (ASX:TLS) share price has beaten the ASX 200 in the last 3 months

Is the Telstra (ASX:TLS) share price the best blue-chip bet for 2022?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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!