This has been a good week so far for the Telstra (ASX:TLS) share price

Telstra shares have been on the move this week. Here are the details.

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rising ASX Telstra share price represented by man jumping in the air for joy looking at mobile phone

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Its certainly been a great week for the Telstra Corporation Ltd (ASX: TLS) share price.

Whereas the S&P/ASX 200 index (ASX: XJO) has slipped 0.13% in the red since Monday, Telstra shares have climbed 2.3% into the green.

Why is the Telstra share price up 2.3% this week?

The Telstra share price has been on the move since the company reported its FY21 results last month.

In its report, Telstra recognised an approximate 12% decrease in total income of $23 billion and a 9.7% decline in underlying EBITDA from FY20. Both of these results were consistent with management’s guidance.

As a result, the company maintained its dividend of 16 cents per share, payable to shareholders on 23 September.

As such, the company sees a period of “mid to high single digit growth” in FY22, forecasting EBITDA of $7 billion to $7.3 billion. This calls for a 9% year on year growth pattern.

Telstra has also jumped on the COVID-19 vaccination bandwagon, pushing a campaign to encourage all of its customers to go out and get vaccinated against the virus.

For instance, the telco giant has put a message of “#LetsVaxx” on every customer’s mobile phone and is offering “fully vaccinated” customers bonus Telstra points. It is also offering to pay its employees $200 to receive the jab.

The campaign has received mixed reviews, but the support appears to be overwhelmingly positive for Australia’s largest telecommunications provider.

What other tailwinds are behind Telstra shares this week?

In addition to these company-specific drivers to the Telstra share price, several brokers also remain bullish on Telstra shares.

Investment bank Goldman Sachs and stockbroker Morgans believe there is more growth to come for Telstra from FY22, which could positively impact its share price. Each has reiterated their buy/add rating on Telstra shares.

Goldman has set a price target of $4.30 on the Telstra share price, and have forecasted a fully franked dividend of 16 cents per share until FY23, and 18 cents per share from FY24.

Morgans is equally as bullish and has assigned a price target of $4.34 for the Telstra share price. The broker is bullish for reasons of valuation and market dynamics.

As such, the broker’s price targets imply an upside potential of 9.1% and 10.2% from the current market price, respectively.

Given these tailwinds over the last week, it starts to make sense as to why Telstra shares have walked through this week in the green.

Telstra share price snapshot

The Telstra share price has climbed 32% this year to date, extending the previous 12 month’s return of 38%.

Both of these results have outpaced the broad index’s return of around 25% over the past year.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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