Telstra's New Bull Positive on Earnings Outlook, Mobile Services Growth
Dow Jones
Sep 03
0007 GMT - Telstra gains a bull in Citi, which thinks its Ebitda--or earnings before interest, taxes, depreciation and amortization--could top market expectations because of stronger cost control. Citi also views Australia's largest telco as being well placed to deliver 5% year-over-year growth in mobile services in FY27, "with potential upside from stronger ARPU [average revenue per user] growth." While an inquiry into regional mobile coverage across Australia and a potential medium-term headwind to ARPU from proposed legislative changes are risks to consider, "we see Telstra as defensive in a soft macro environment," Citi says. It upgrades the stock to buy from neutral. It keeps a target price of 5.25 Australian dollars a share. The stock is up 0.2% at A$4.73.
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