Telstra Group Ltd (ASX: TLS) stock has been a disappointing performer in recent months.
After peaking at a 52-week high of $4.46 in June, the telco giant’s shares have been on a downward spiral.
This has left them trading at $3.79 today, which is just a fraction away from their 52-week low of $3.75.
While this is disappointing, has it created a buying opportunity for investors? Let’s find out.
Is Telstra stock a buy?
The market may not be feeling overly bullish on the company, but the same cannot be said for Australia’s leading brokers.
A large portion of the broker community has the equivalent of a buy rating on the telco leader’s shares with price targets offering double-digit returns.
In addition, they are expecting above-average dividend yields from its shares over the coming years.
For example, last month Macquarie put an outperform rating and $4.40 price target on its shares. This implies potential upside of 16% for investors.
And with Macquarie forecasting fully franked dividends of 18 cents per share in FY 2024 and 19 cents per share in FY 2025, investors can expect to receive a yield of approximately 5% over the next 12 months.
Who else is bullish?
A broker that is even more bullish is Morgan Stanley. It has an overweight rating and $4.75 price target on Telstra stock.
This suggests upside of 25% for investors from current levels. And if you include forecast dividends, you’re looking at a total return of approximately 30% between now and this time next year.
To put that in context, a $20,000 investment would generate a return of $6,000 for investors if Morgan Stanley is on the money with its recommendation.
Overall, this could make Telstra worth considering if you’re looking for some new portfolio additions this month.
The post Is Telstra stock a buy right now? appeared first on The Motley Fool Australia.
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More reading
- 3 ASX dividend shares to buy with ~5% yields for an income boost
- Long-term investing: 3 top ASX stocks you can buy for under $20 a share
- Top ASX passive income shares to buy in March 2024
- 3 key numbers for the Telstra share price that I think are being overlooked
- The Telstra share price is near a 52-week low: Should you buy?
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 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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