2 more buy recommendations

ABN Amro rates the stock as Buy - The broker notes European Telcos enjoyed strong share price performance last year as fundamentals improved and while Telstra lagged this it expects some catch-up this year.
It sees better cashflow potential for the stock than is currently expected as proving supportive for better performance.
Target price is $4.50 Current Price is $4.14 Difference:$0.36 - (brackets indicate current price is over target). If TLS meets the ABN Amro target it will return approximately 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company''s fiscal year ends in June. ABN Amro forecasts a full year FY07 dividend of 28.00 cents and EPS of 26.70 cents . At the last closing share price the estimated dividend yield is 6.76%. At the last closing share price the stock''s estimated Price to Earnings Ratio (PER) is 15.51.


Credit Suisse rates the stock as Outperform - Credit Suisse has always been one of the most bullish experts on Telstra in the local market. This role is again emphasised by the fact that Telstra is now again enjoying a target price starting with a 5.
Review of model and assumptions has led to higher forecasts with the analysts stating their confidence in the turn around has grown further. As a result, the target price has been increased to $5.05 (from $4.78).
Analysts forecast "meaningful operating and capital cost savings" in the year ahead and no risk to the FY08 dividend.
Target price is $5.05 Current Price is $4.14 Difference:$0.91 - (brackets indicate current price is over target). If TLS meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company''s fiscal year ends in June. Credit Suisse forecasts a full year FY07 dividend of 28.00 cents and EPS of 32.30 cents . At the last closing share price the estimated dividend yield is 6.76%. At the last closing share price the stock''s estimated Price to Earnings Ratio (PER) is 12.82.

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