What’s the outlook for the Telstra share price in May?

person on old-fashion telephone, surprised personperson on old-fashion telephone, surprised person

The Telstra Corporation Limited (ASX: TLS) share price has climbed 1% in the past month, but can it pick up further in May?

The telecommunication giant’s shares are currently edging into the green at $3.995 apiece, up 0.38% so far today. For perspective, the S&P/ASX 200 Index is 0.08% in the red at the time of writing.

Let’s take a look at the outlook for Telstra.

What’s the outlook for the Telstra share price?

Telstra could be a buy, the team at Morgans believes. Analysts have placed a $4.56 price target on the company’s share along with an add rating. This is an upside of more than 14% on the current share price. Morgans also predicts fully franked dividends per share of 16 cents in FY 2022 and FY 2023.

Telstra was among the top three traded ASX 200 shares on Tuesday. The telco has been undertaking a $1.35 billion buyback program.

In recent news, Telstra has appointed Michael Ackland to the role of chief financial officer. Ackland will take over from Vicki Brady, who has been promoted to CEO of the company.

Ackland is currently serving as consumer and small business group executive and will take on his new challenge from 1 September.

Commenting on the news, incoming CEO Vicki Brady said:

I was thrilled that we were able to appoint an internal candidate to the role. Michael has exceptional credentials and is well placed to continue to drive Telstra’s financial outlook and success

Outgoing CEO Andrew Penn added:

Michael has been instrumental in driving T22 changes, including reducing consumer and small business in-market plans from 1800 to 20, as well as improving consumer and small business customers’ digital experience and decreasing call volumes and complaints.

Telstra is now recruiting for a new consumer and small business group executive.

Last week, Telstra announced it will acquire a 51% stake in streaming box provider Fetch TV. This involved a $50 million investment from Telstra. Fetch has 670,000 active subscribers.

Telstra share price snapshot

The Telstra share price has leapt 14% over the past 12 months, but it has lost nearly 5% year to date.

For perspective, the benchmark S&P/ASX 200 Index has returned more than 3% over the past year.

Telstra has a market capitalisation of more than $46.6 billion based on its closing share price today.

The post What’s the outlook for the Telstra share price in May? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in 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 Scott Phillips.

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