The Telstra Corporation Ltd (ASX: TLS) share price has risen today. The telco has news of a new initiative called ‘Telstra Day’.
What is Telstra Day?
The telco described this new initiative as “one day of unreal deals”. The idea is that consumers can save hundreds of dollars of various pieces of new technology.
Unlike other ‘days’ from different companies, like Afterpay Ltd (ASX: APT), Telstra plans to do a ‘Telstra Day’ every month.
Without going through the whole list of what Telstra is going to offer, the telco said that one part of its will be $500 off the latest smartphones from Apple and Samsung. It isn’t just trying to flog some old tech that it hadn’t been able to get off the shelves yet.
But half of the country is in lockdown…
Telstra has thought of that. It acknowledged that getting to a store can be tricky during state-based health restrictions. The telco is also running the Telstra Day sales on its online site as well. Indeed, the business is doing a free home delivery if consumers spend $100 or more.
Buy now, pay later?
Consumers have the option of paying for the purchase upfront. Or they can pay it off later with their Telstra bill.
The company also has a 7-day price match promise (with certain conditions).
Telstra share price movement
The Telstra share price went up around 0.5% today. Only buyers of Telstra shares today know how much impact Telstra Day had on their decision to buy at the price they did.
Telstra is due to reveal its FY21 result to investors on 12 August 2021 which may have an even bigger impact on the Telstra share price.
The broker UBS currently rates Telstra shares as a hold with a price target of $3.90. It doesn’t see much upside from the current level.
According to the broker, Telstra is expected to generate earnings per share (EPS) of $0.16 per share. That would mean the Telstra share price is valued at 23x FY21’s estimated earnings.
UBS also thinks that Telstra will pay a fully franked dividend yield of $0.16 for the year. That would equate to a grossed-up dividend yield of 6%.