It certainly has been a great year so far for the Telstra Corporation Ltd (ASX: TLS) share price.
The telco giant's shares are up 20% since the start of the year.
Incredibly, this means the Telstra share price is even outperforming market darling Afterpay Ltd (ASX: APT) in 2021.
Why is the Telstra share price storming higher?
There have been a number of catalysts for the strong performance by the Telstra share price in 2021. This includes a solid half year result, its plans to unlock value through a restructure and asset monetisation, and bullish commentary by management.
In respect to the latter, the company's CEO, Andy Penn, revealed that he is targeting mid to high single digit operating earnings growth in FY 2022.
Mr Penn commented: "I am confident the many initiatives we have taken under our T22 program, particularly in simplifying the business and the digitisation program, will further improve customer experience."
"To get the real benefits from all the effort we've already made, Telstra needs to be bold. I've set an aspiration for mid to high single-digit growth in underlying EBITDA in FY22 and $7.5 to $8.5 billion of underlying EBITDA in FY23. I am confident we can deliver this if we remain focused," he added.
In light of this, the market appears confident that Telstra's dividend cuts are over and that 16 cents per share will be sustainable in the coming years. This was no doubt a huge relief for shareholders who have faced countless dividend cuts over the last decade.
Is it too late to invest?
According to a note out of Ord Minnett from earlier this month, its analysts still see a lot of value in the Telstra share price.
The note reveals that the broker has a buy rating and $4.10 price target on its shares. This implies potential upside of ~14% over the next 12 months excluding dividends. Whereas if you include the 16 cents per share fully franked annual dividend the broker is forecasting for the foreseeable future, this stretches to over 18%.
Ord Minnett believes Telstra is well-positioned to benefit from its leadership in 5G internet.