Telstra News

Telstra (TLS) have now completed their T3 offer. Stock analyst, Macquarie Research Equities (MRE) have an upgraded stock recommendation for Telstra of Neutral. The upgrade is driven purely by share price movements (just as what happened in October when the TLS share price fell to $3.83 which triggered a downgrade to underperform). MRE have an unchanged a price target of $3.50. Assuming TLS meets their target metrics, MRE have a DCF valuation of $4.81 per share, however "MRE believe the likelihood of this being achieved is low." " The key concern remains the outlook for the fixed line business, which in FY06 produced 33% of Telstra’s revenues and between 40–45% of its cashflows. Fixed line revenues are under pressure from ULLSbased competition, VoIP services and aggressive mobile competition. MRE recognise that this thesis is neither new, nor original, but highlight the ongoing risk to this core earnings stream for the next five years at least." "Other concerns within Telstra’s operations include the outlook for the maturing mobiles market in Australia (will data provide the next leg of growth?), a lack of clarity into Telstra’s true cost base while heavy transformation spending is taking place, and the outlook for Sensis, which continues to generate over 70% of its revenues from print directories. Offsetting this is continued strong growth in broadband revenues and market share."

Meanwhile, Telstra (TLS) have an upgraded broker call from Citigroup Investment Research to Hold. "The current share price reflects operational risks and reduced T3 overhang. Sentiment will be marginally positive despite the risk of data points which may prove negative on a medium term basis."

Telstra Limited is listed on the Australian Stock Exchange (ASX) under stock code TLS. You can view their investor website here. Solomon Trujillo is the CEO of Telstra. TLS was initially listed on 17 November, 1997. Previous articles about Telstra: " Telstra a Long Term Buy" and Telstra is Something Absolutely Not Something You Would Want to Trade". Find out the meaning of the recommendations in this primer. Telstra is an Australian telecommunications carrier. TLS primary focus is in the provision of telecommunications and information services, including mobiles, internet, and pay television.Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!