Telstra (ASX:TLS) share price lower despite retail shareholder update

group of friends checking facebook on their smartphones

The Telstra Corporation Ltd (ASX: TLS) share price is edging lower on Wednesday amid a broad market selloff.

At the time of writing, the telco giant’s shares are down 0.5% to $3.91.

This is actually better than the market as a whole, which may be due to the release of a shareholder presentation today.

What did Telstra release?

This morning Telstra is holding its retail shareholder event and has released its accompanying presentation.

The telco giant used the presentation to reiterate its T25 plans, which include bold growth targets in the coming years.

For example, the company is aiming to grow its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) by a mid-single digit compound annual growth rate (CAGR) between FY 2021 and FY 2025.

Things are even better for its underlying earnings per share, with management targeting a high-teens CAGR for the same period.

Another focus for Telstra will be its dividend. Management advised that it intends to maximise its full franked dividend and seek growth over time.

Some of this growth will be underpinned by management’s cost cutting plans. It is seeking to remove a further $500 million of fixed costs from FY 2023 to FY 2025. Though, it stresses that this won’t be at the expense of investments in growth.

Is the Telstra share price in the buy zone?

One leading broker that sees a lot of value in the Telstra share price is Goldman Sachs.

A recent note out of the investment bank reveals that its analysts have a buy rating and $4.40 price target on its shares.

Based on the current Telstra share price, this implies potential upside of 12.5% or 16.5% if you include the forecast fully franked 16 cents per share dividend.

Goldman was pleased with Telstra’s T25 plans. It is expecting the plans to underpin solid earnings and dividend growth in the future.

The post Telstra (ASX:TLS) share price lower despite retail shareholder 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

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.

from The Motley Fool Australia https://ift.tt/3ujBRIq

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s