The broker suggests Telstra’s share price has languished below $3 due to bearishness around dividends, infrastructure valuation and mobile competition. The dividend payout has since been confirmed, and yesterday’s announced tower spin-off will crystalise value.
That just leaves mobile, but the broker sees 5G, and specifically the new 5G iPhones, as an opportunity to migrate customers to higher price-points. Management noted 72% of iPhone pre-orders are on plans. Buy and $3.70 target retained.
Sector: Telecommunication Services.
Target price is $3.70.Current Price is $3.08. Difference: $0.62 – (brackets indicate current price is over target). If TLS meets the UBS target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
