When it comes to investing in one of Australia’s leading telcos the first two names that are likely to come to mind for the majority of investors are Telstra Corporation Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPM).

But which should you invest in today? Well according to analysts at Citi investors should buy TPG Telecom and sell Telstra.

A research note out of the investment bank today reveals that its analysts have initiated coverage on TPG Telecom with a buy rating and a $14.50 price target. Conversely they have downgraded Telstra from neutral to a sell rating and reduced the price target on Telstra’s shares to just $4.50 from $5.72.

The reason for these changes is largely down to its view that TPG Telecom will be better positioned to deal with the changing market dynamics after the NBN rollout evens the competitive landscape for broadband providers.

As a result it expects Telstra’s dividend to come under significant pressure in a few years time, ultimately leading to a substantial cut.

Whilst it is hard to disagree with the view of Citi’s analysts, it is worth remembering that Telstra is busy diversifying its business with key operations in the Asia-Pacific region and also in the healthcare sector.

Whether it will ultimately be enough to offset any declines in its broadband business only time will tell, but Telstra is certainly giving itself a fighting chance by positioning the business well in these markets in my opinion.

Personally, I wouldn’t rush out and sell Telstra’s shares today. But I would suggest rushing out to buy TPG Telecom’s shares. This is a company on the up and I expect it to continue to produce solid earnings growth for many years to come.

The company is lagging behind its competitors considerably in the mobile phone market, although if the much speculated acquisition of Vodafone eventually occurs then TPG Telecom will become a force to be reckoned with in the mobile market. This makes it a buy today in my eyes.

Lastly, before rushing out to make an investment have you checked to see if you have either of these three wealth destroying shares in your portfolio? Each could be harming it right now and they might be best swapped out for TPG Telecom.

3 Rotten Shares to Sell, and 1 to Buy Today

After a double-digit rally for the ASX since 2016 lows, investors should be on high alert. You'll find a full rundown below of 3 shares we think you should avoid today plus one top pick worth buying, even if the market turns south and the RBA keeps rates at an "emergency low." Simply click here to uncover these stocks.

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.