Shares of ASX-listed Telstra Group Limited (AU:TLS) are approaching their 52-week low of AU$3.75. Many analysts believe this is a potential buying opportunity for investors and have currently rated the stock a Buy, estimating a decent upside potential from current levels.
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Telstra Group is an Australian telecommunications company offering a diverse range of communication and technology services. The company’s mobile segment is the largest in Australia in both user base and coverage.
Analysts Remain Bullish
While Telstra’s share price is currently not trending favourably, analysts maintain a positive outlook on the company. After the company’s half-year results for FY24 in February, analysts have reiterated their ratings on the stock, with a majority of Buy recommendations.
Analyst Kane Hannan from Goldman Sachs confirmed his Buy rating on TLS stock, forecasting over 19% upside. Hannan is impressed by the company’s latest numbers and thinks that certain challenges, like the underperformance of its NAS (network applications and services) segment, are only “cyclical.”
Meanwhile, analysts at UBS, Jarden, Jefferies, and Macquarie projected a growth of over 15% in the share price while maintaining their Buy ratings.
Telstra’s Half-Year Performance
Telstra reported a 1.2% growth in its total income for the six months that ended on December 31, 2023. Underlying EBITDA grew by 3.1% to AU$4.0 billion compared to the corresponding period of the prior year. The company’s performance was mainly driven by its mobile business, which contributed an increase in EBITDA of nearly $300 million. The growth was well supported by an increase in the number of customers and effective cost management.
Telstra announced a fully franked interim dividend of AU$0.09 per share, up 5.9% from the previous year. The company offers a dividend yield of 4.57%.
For Fiscal 2024, the company anticipates underlying EBITDA in the range of AU$8.2 billion to AU$8.3 billion.
Is it Good to Invest in Telstra?
According to TipRanks, TLS stock has received eight Buys, one Hold, and one Sell recommendation. The Telstra share price target is AU$4.41, which represents a growth of 16% from the current price level.
