Shares of TLS have been in a basing pattern above the $3.00 level and there are solid fundamental reasons for accumulating shares in this current range.
Since the share price has slipped over 17% over the last 12 months, the current yield is now close to 10%, including the franking credits.
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Mobile is the company’s biggest earner and its most important revenue stream. TLS added 235,00 net new retail customers in H1 compared to 200,000 a year ago and only 18,000 in the June half of 2017.
A recent analyst research letter forecasts the continued dominance in the Telco space, as well as diversification into other data streams will lift the share price into the $4.60 area over the medium-term.
As such, we continue to favor the long side of TLS for value investors looking for growth and a solid dividend.
Telstra
