The large fund managers, Investors Mutual, 11.5.23 nominated TLS as their "Stock Of The Month" for April 2023.
Analysts D. Moore & L. Goode said
"...And also, you’ve got an industry that’s going through a period of significant market repair [after NBN setbacks, & "extreme price war" previously between telcos- my words] and the other thing as well, in that, you know, you do look for some long term growth. Well, the population is usually growing and that means that the number of telco services is usually growing as well...
In regards to Telstra, why do we specifically like Telstra? Apart from the dynamic of improving pricing for the whole industry, there’s quite a few reasons why we like the business. NBN has just been such a huge headwind for them over the past several years. It’s been a three billion dollar headwind to earnings, that is now essentially complete. So that three billion headwind is done. And going forward, the business should deliver pretty good earnings growth really from that mobile business predominantly. So that’s sort of a key element.
The second thing we like about the business is they own some really high quality infrastructure assets, which we think are sort of undervalued in the share price and probably the best one, the highlight is their NBN rental business where they rent to NBN all the pipes and ducts, which the fibre goes through. And that business earns a billion dollar rental stream which is paid by the government".
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)