Charlie Aitken - I am upgrading Telstra (TLS) back to buy

Bell Potter


Charlie Aitken - I am upgrading Telstra (TLS) back to buy. One of the key attractions of TLS: they are now corporately predictable and consistently on message. I think the Australian economy simply can't open for business each day without TLS's reliable networks. I am forecasting TLS generates 34c EPS in FY15 and pays an annual dividend of 31c. That is a 1c rise in my previous FY15 TLS dividend forecast. I suspect given flat domestic cash rates, volatile equity markets and volatile bond markets that TLS prospective dividend yield will settle in the 6.00%ff to 5.50%ff band over the year ahead. With the stock at the bottom end of that prospective yield trading range (5.86%/8.37% grossed up @$5.29) I am upgrading it to buy today, expecting a 12 month total return of +10% to 14% including the value of franking credits.

Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.