The Telstra Corporation Ltd (ASX: TLS) share price was a strong performer in November.
Over the month, the telco giant's shares stormed 14.5% higher.
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Why did the Telstra share price zoom higher?
Investors were fighting to get hold of Telstra's shares last month for a couple of reasons.
The first was due to improving investor sentiment thanks to COVID-19 vaccine progress.
This has sparked hopes that travel markets will recover quicker than previous expected, which would be good news for Telstra. Its revenues have taken a small hit this year from the lack of roaming revenue.
In addition to this, the company made a major announcement in the middle of the month relating to its structure. Telstra revealed that it is looking to restructure the company to create three separate legal entities.
The restructure will see Telstra split up into InfraCo Fixed, InfraCo Towers, and ServeCo.
Telstra's CEO, Andrew Penn, believes the restructure would enable the company to take advantage of potential monetisation opportunities for its infrastructure assets which could create additional value for shareholders.
Mr Penn explained: "The proposed restructure is one of the most significant in Telstra's history and the largest corporate change since privatisation. It will unlock value in the company, improve the returns from the company's assets and create further optionality for the future."
"The challenges and disruptions of the last 6-12 months have reinforced the increasing value of infrastructure assets globally; the importance of the digital economy, not only to business but to the whole of Australia and its economic recovery; and the dependence of the digital economy on telecommunications as its platform," he added.
The reaction.
This plan went down well with a number of brokers, with many buy ratings being reaffirmed by analysts.
UBS expects the spin off to crystalise value and retained its buy rating and $3.70 price target. Elsewhere, Credit Suisse feels the same way and retained its outperform rating and $3.85 price target.
And finally, Goldman Sachs reiterated its buy rating and $3.75 price target on its shares.
In addition, all three brokers are forecasting the company to pay a 16 cents per share dividend in FY 2021 and FY 2022.
