Insights

Is the Telstra (ASX:TLS) share price still good value?

Should you buy this telco giant’s shares?
The post Is the Telstra (ASX:TLS) share price still good value? appeared first on The Motley Fool Australia. –

The Telstra Corporation Ltd (ASX: TLS) share price was on form last week.

In response to a solid full year result, the telco giant’s shares rose to a new 52-week high of $4.02 before edging back a touch.

This means the Telstra share price is now up almost 32% since the start of the year.

Where next for the Telstra share price?

The good news for shareholders is that a number of leading brokers believe the Telstra share price can keep on rising.

One of those is Morgans. Last week its analysts retained their add rating and lifted their price target on the company’s shares to $4.34.

Based on the latest Telstra share price, this implies potential upside of almost 10% over the next 12 months.

And with Morgans forecasting another fully franked dividend of 16 cents per share in FY 2022, this potential return stretches to almost 14%.

What did Morgans say?

Morgans was pleased with Telstra’s performance in FY 2021, noting that it was “the first time in years that TLS has delivered a good, clean result.”

Looking ahead, there are three key reasons why the broker is positive on the company.

It explained: “Three key reasons for our Add rating are: 1) industry dynamics are improving (mobile prices are finally increasing); 2) the SOTP [sum of the parts] for TLS is worth more than the current share price (and steps to release this value are underway); and 3) Underlying EBITDA has returned to growth from 2H21 (and should continue growing over the next few years) which means earnings have found a base.”

All in all, although the Telstra share price is outperforming the ASX 200 by a significant margin this year, the broker doesn’t believe it is too late for investors to pick up shares.

The post Is the Telstra (ASX:TLS) share price still good value? 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 May 24th 2021

More reading

Here are the 3 most active ASX 200 shares this Friday

Brokers name 3 ASX shares to buy today

ASX 200 midday update: Telstra 52-week high, PointsBet rises on US update

Telstra (ASX:TLS) share of Digicel acquisition must be a minority — CEO
Top brokers give their verdict on the Telstra (ASX:TLS) share price

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!