The Telstra Corporation Ltd (ASX: TLS) share price has continued its positive run and pushed higher again on Tuesday.
In morning trade the telco giant's shares are up 1.5% to a 52-week high of $3.46.
Why is the Telstra share price at a 52-week high?
Telstra's shares have been given a boost recently from positive broker notes out of both Goldman Sachs and Morgan Stanley.
At the start of the month Goldman Sachs retained its conviction buy rating and $3.70 price target on the company's shares after Optus released its new plans. The broker believes that increased prices means that Optus could now be focusing on growing its ARPU rather than subscribers.
In addition to this, Goldman believes Telstra is well-placed to hit the top-end of its FY 2019 underlying guidance and expects it to grow its ROIC to in excess of 10% by FY 2023.
Analysts at Morgan Stanley are almost as bullish. Last week they upgraded Telstra's shares from a neutral rating to a buy rating and lifted the price target on the company's shares by a sizeable 20% to $3.60.
According to the note, although the broker acknowledges that there are internal risks that investors need to remain cautious of, it believes there are external tailwinds that are building and have yet to be priced in by the market.
These tailwinds include the lessening competitive threat from TPG Telecom Ltd (ASX: TPM) in the mobile market, possible upside from the 5G roll out, and rational competition from rival Optus following its recent plan updates.
This led to the broker upgrading its earnings forecasts and stating its belief that Telstra's dividend is now sustainable at 16 cents per share.
Should you invest?
Whilst I'm not a buyer of its shares just yet, both these brokers believe the Telstra share price can climb higher from here. This could make it worth considering if you agree that the company is over the worst of its issues now.
