In my opinion, Telstra Corporation Ltd (ASX: TLS) shares are a hold.
Oddly, the majority analysts appear to agree with me.
According to The Wall Street Journal, the consensus price target for Telstra shares is $5.96 with the majority of analysts rating it as a hold.
Given that the $68 billion telecommunications company has soared nearly 100% over the past five years, but profits per share have climbed by just 32%, the rating appears justified.
However, Telstra shares are down 15% since the beginning of August, and some shareholders may be a little concerned. My advice is to remain calm and focus on the long term.
Indeed, the outlook for Telstra moving forward is still very positive because:
- Cash payments as part of the sale of its 100-year-old copper cable network to the NBN Co are set to start rolling in.
- The group's expansion into Asia, where they hope to generate 30% revenue by 2020, has only just begun.
- Australians are using more and more data every day, not less.
- Telstra's return from its investments in eHealth and networked services is only now beginning to show through
- It boasts a huge 5.5% fully franked dividend at today's prices (it'd be higher if you bought shares at lower prices)
- Its balance sheet is very strong
I've previously said so long as there are no unforeseen events; I'd start loading up on Telstra shares at $5.00. However, until prices drop to my buying level, it'll remain on my watchlist.
