It certainly has been a great 12 months for the Telstra Corporation Ltd (ASX: TLS) share price.
Since this time last year, the telco giant's shares have risen by a sizeable 38%.
This is more than triple the return of the ASX 200 over the same period.
Image source: Getty Images
Can the Telstra share price go even higher?
One leading broker that is positive on the Telstra share price is Morgans. It currently has an add rating and $4.55 price target on the telco giant's shares.
Based on the current Telstra share price, this implies potential upside of 9.5% for its shares over the next 12 months.
And with the broker forecasting a 16 cents per share fully franked in FY 2022 (the equivalent of a 3.85% yield), the total return on offer stretches to almost 13.5%.
Four reasons to buy shares
Morgans has named four reasons why it is positive on the company. This includes its valuation, its risk management, and favourable outlook.
The broker explained: "Industry dynamics have turned positive (NBN and mobile prices are increasing after 5 years of decline; TLS's targets imply they continue to rise). The SOTP for TLS is worth more than the current share price (and steps to release this value are underway; albeit timing is unclear). While PNG [the Digicel acquisition] is not without risk, this deal shows management's ability to sensibly manage risk, and it could create further upside, all going to plan. Underlying earnings returned to growth in 2H21 and should continue growing out to FY25."
Overall, while the Telstra share price has smashed the market over the last 12 months, Morgans appears to believe it can do it all again in 2022. This could make the telco giant a share to buy this year.
