Telstra (ASX:TLS) share price lower despite retail shareholder update

This telco giant reiterated its growth plans today…

| More on:

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 is edging lower on Wednesday amid a broad market selloff.

At the time of writing, the telco giant's shares are down 0.5% to $3.91.

This is actually better than the market as a whole, which may be due to the release of a shareholder presentation today.

group of friends checking facebook on their smartphones

Image source: Getty Images

What did Telstra release?

This morning Telstra is holding its retail shareholder event and has released its accompanying presentation.

The telco giant used the presentation to reiterate its T25 plans, which include bold growth targets in the coming years.

For example, the company is aiming to grow its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) by a mid-single digit compound annual growth rate (CAGR) between FY 2021 and FY 2025.

Things are even better for its underlying earnings per share, with management targeting a high-teens CAGR for the same period.

Another focus for Telstra will be its dividend. Management advised that it intends to maximise its full franked dividend and seek growth over time.

Some of this growth will be underpinned by management's cost cutting plans. It is seeking to remove a further $500 million of fixed costs from FY 2023 to FY 2025. Though, it stresses that this won't be at the expense of investments in growth.

Is the Telstra share price in the buy zone?

One leading broker that sees a lot of value in the Telstra share price is Goldman Sachs.

A recent note out of the investment bank reveals that its analysts have a buy rating and $4.40 price target on its shares.

Based on the current Telstra share price, this implies potential upside of 12.5% or 16.5% if you include the forecast fully franked 16 cents per share dividend.

Goldman was pleased with Telstra's T25 plans. It is expecting the plans to underpin solid earnings and dividend growth in the future.

Motley Fool contributor James Mickleboro has no position 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.

More on Share Fallers

A man sitting at his desktop computer leans forward onto his elbows and yawns while he rubs his eyes as though he is very tired.
Share Fallers

Why did DroneShield shares crash 30% in July to new one-year lows?

DroneShield shares got smashed in July. But why.

Read more »

Man with his head on his head with a red declining arrow and A worried man holds his head and look at his computer as the Megaport share price crashes today
Share Fallers

Down 43%! What on earth happened with Liontown shares in July?

Investors pummelled Liontown shares in July. Time to buy?

Read more »

A bored woman looking at her computer, it's bad news.
Share Fallers

These were the worst-performing ASX 200 shares in July

These shares had a tough time in July. Let's find out why.

Read more »

A man dressed in a business suit freefalls from a rocky cliff with a grey sky background.
Share Fallers

Why these 3 ASX 200 stocks are crashing in this week's surging market

Investors sent these three ASX 200 shares tumbling 15% to 18% in this week’s rising market. But why?

Read more »

A man holds his head in his hands after seeing bad news on his laptop screen.
Share Fallers

3 ASX shares down at least 50% in FY26

Let's see why these shares were sold off during the last financial year.

Read more »

Side-on view of a devastated male investor laying his head on his laptop keyboard
ASX Share Market News

5 biggest losers on the ASX 200 in FY26

The worst performers include 2 sector leaders, and all 5 stocks more than halved in value.

Read more »

A man dressed in a business suit freefalls from a rocky cliff with a grey sky background.
Share Fallers

Why DroneShield, WiseTech and Judo shares are leading the ASX 200 lower this week

WiseTech, DroneShield, and Judo shareholders have had a week to forget. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Judo Capital, Minerals 260, Santos, and Worley shares are dropping today

These shares are under pressure on Thursday. What's going on?

Read more »