The Telstra Corporation Ltd (ASX: TLS) share price was on form last week.
In response to a solid full year result, the telco giant’s shares rose to a new 52-week high of $4.02 before edging back a touch.
This means the Telstra share price is now up almost 32% since the start of the year.
Where next for the Telstra share price?
The good news for shareholders is that a number of leading brokers believe the Telstra share price can keep on rising.
One of those is Morgans. Last week its analysts retained their add rating and lifted their price target on the company’s shares to $4.34.
Based on the latest Telstra share price, this implies potential upside of almost 10% over the next 12 months.
And with Morgans forecasting another fully franked dividend of 16 cents per share in FY 2022, this potential return stretches to almost 14%.
What did Morgans say?
Morgans was pleased with Telstra’s performance in FY 2021, noting that it was “the first time in years that TLS has delivered a good, clean result.”
Looking ahead, there are three key reasons why the broker is positive on the company.
It explained: “Three key reasons for our Add rating are: 1) industry dynamics are improving (mobile prices are finally increasing); 2) the SOTP [sum of the parts] for TLS is worth more than the current share price (and steps to release this value are underway); and 3) Underlying EBITDA has returned to growth from 2H21 (and should continue growing over the next few years) which means earnings have found a base.”
All in all, although the Telstra share price is outperforming the ASX 200 by a significant margin this year, the broker doesn’t believe it is too late for investors to pick up shares.
The post Is the Telstra (ASX:TLS) share price still good value? appeared first on The Motley Fool Australia.
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More reading
- Here are the 3 most active ASX 200 shares this Friday
- Brokers name 3 ASX shares to buy today
- ASX 200 midday update: Telstra 52-week high, PointsBet rises on US update
- Telstra (ASX:TLS) share of Digicel acquisition must be a minority — CEO
- Top brokers give their verdict on the Telstra (ASX:TLS) share price
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.
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