The Telstra share price is near a 52-week low: should you buy?

The Telstra Group Ltd (ASX: TLS) share price has been out of form so far in 2024.

Since the start of the year, the telco giant’s shares have lost approximately 4% of their value.

This has left Telstra’s shares trading within sight of its 52-week low of $3.75.

Is the Telstra share price good value?

While investors haven’t been giving Telstra’s shares much love this year, the broker community remains enamoured with the company.

A large number of analysts currently have the equivalent of buy ratings on its shares with price targets offering double-digit returns over the next 12 months.

For example, Morgan Stanley has an overweight rating and $4.75 price target. This implies potential upside of 25% for the Telstra share price from current levels.

Elsewhere, the team at Macquarie has an outperform rating and $4.40 price target on its shares. This suggests that a return of almost 16% is possible between now and this time next year.

And over at Goldman Sachs, its analysts have a buy rating and $4.55 price target. This offers a potential gain of almost 20% for investors.

In addition, all three brokers are forecasting fully franked dividends per share of 18 cents in FY 2024. This is the equivalent of a 4.7% dividend yield at current prices.

Commenting on the company, last month Goldman Sachs said:

We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn.

The post The Telstra share price is near a 52-week low: should you buy? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. 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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