The Telstra share price just hit a 52-week high

The Telstra Corporation Ltd (ASX:TLS) share price has continued its strong run and hit a 52-week high on Thursday…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Telstra Corporation Ltd (ASX: TLS) share price has continued its solid run on Thursday and pushed higher again. In morning trade the telco giant's shares rose approximately 1% to hit a new 52-week high of $3.50.

This latest gain means that Telstra's shares have risen a massive 23% since the start of the year.

Why is the Telstra share price at a 52-week high?

A number of factors have led to the Telstra share price reaching this new high on Thursday.

One key catalyst was the recent decision by the ACCC to block the proposed merger between TPG Telecom Ltd (ASX: TPM) and Vodafone Hutchinson Australia.

The competition regulator advised that it blocked the merger because it believes it will reduce competition and contestability in the fixed broadband services market and "substantially lessen competition in the supply of mobile services because the proposed merger would preclude TPG entering as the fourth mobile network operator in Australia."

And while TPG Telecom and Vodafone Australia will be appealing the decision in the Federal Court, a decision is unlikely to be made for some time.

This, according to Goldman Sachs, is likely to be a big positive for Telstra as it will mean another year of distraction for two key competitors.

And if the Federal Court ultimately rules in favour of the ACCC, the broker believes Telstra will benefit greatly.

Its analysts said: "Should the Federal Court appeal be unsuccessful, TLS will no longer face a stronger number 3, and will continue competing with the standalone fixed/mobile operations of TPM/VHA."

In light of this, the broker retained its conviction buy rating and lifted the price target on Telstra's shares to $3.90 last week.

Even after today's gain, this price target implies potential upside of over 11% for its shares over the next 12 months, excluding dividends. Including them, this gain stretches to in excess of 16%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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 Scott Phillips.

More on 52-Week Highs

A goldfish jumps out of a crowded fishbowl into another empty bowl, indicating an ASX market leader with a strong share price
Healthcare Shares

Up 20% in 2024, why this ASX 200 healthcare stock just hit a new 52-week high

This healthcare stock has been on fire over 2024.

Read more »

a cute young girl with curly hair sips a glass of milk through a straw with a smile on her face.
52-Week Highs

Up 63%: The A2 Milk share price just hit a new 52-week high

A2 Milk shares can't stop winning for investors in 2024...

Read more »

A piggy bank on the cloud in the blue sky symbolising a record high share price.
52-Week Highs

Guess which 7 ASX 200 shares are smashing new 52-week highs today

Investors are sending these seven stocks soaring to new one-year highs today.

Read more »

A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend
52-Week Highs

Why is the CBA share price setting a new all-time high today?

Australia's biggest bank just became more expensive. What is driving the demand?

Read more »

A man and a woman stand on an external balcony in a dense city environment filled with high rise buildings and commercial properties. The man is pointing up at a high rise building and the woman is looking on.
Real Estate Shares

Up 73% in a year, this surging ASX 200 stock just hit another all-time high

This property share has skyrocketed, with the company recently upgrading its FY24 guidance for a second time.

Read more »

two doctors smile as they sit together at a desk looking at a patient's Xray.
Healthcare Shares

This ASX 200 healthcare stock just hit an all-time high: Is it too late to buy?

The valuation of this high-performer has soared.

Read more »

Three Archer Materials scientists wearing white coats and blue gloves dance together in their lab after making a discovery
Healthcare Shares

Which ASX 200 healthcare share with AI upside just hit a new 52-week high?

And top broker Goldman Sachs says the share price can go even higher.

Read more »

A happy family of four on holidays stand on a jetty and cheer.

Would I still buy Life360 shares as they hit all-time highs?

Could this high-flying tech share still be a buy at all-time highs?

Read more »