The Telstra Corporation Ltd (ASX: TLS) share price is down 0.4% as we head into lunchtime.
That puts shares in the ASX 200 telco giant down 6.8% so far in 2022, compared to a 3.5% year-to-date loss posted by the S&P/ASX 200 Index (ASX: XJO).
At the current Telstra share price, the company pays a trailing dividend yield of 2.8%, fully franked.
So, is Telstra a good buy in 2022?
What the brokers are saying
Telstra has been in focus as the company has been monetising its assets, cutting costs and working to improve customer satisfaction and retention. As part of its next steps under the T25 strategy, Telstra will also expand its 5G coverage.
Goldman Sachs said that, "Combined with its greater infrastructure assets, Telstra is our preferred integrated telecom."
Goldman has a neutral rating on the telco, with a 12-month price target of $4.30. That's 9% higher than the current Telstra share price.
Goldman noted:
The most significant development was the announced mobile networking sharing agreement between Telstra and TPG Telecom Ltd (ASX: TPG), whereby TPG is paying for access to a significant portion of TLS regional coverage. This is driving incremental wholesale earnings for TLS, improving the quality/speed of its metro and regional networks.
Goldman is forecasting 7% underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) growth of 7% for FY21-FY23.
Morgans is even more positive on Telstra.
The broker believes ASX 200 investors are undervaluing Telstra based on the sum of its parts. Morgans has an add rating on Telstra shares with a price target of $4.55, 15% higher than the current price.
Morgans forecasts the telco will pay dividends of 16 cents per share, fully franked, in FY22 and FY23.
Telstra share price snapshot
Though it's slipped in 2022, the Telstra share price remains up an impressive 21.1% over the past 12 months. By comparison, the ASX 200 is up 8.3% during that same time.
