The Telstra Corporation Ltd (ASX: TLS) share price could be great value after the telco's full year results.
That's the view of the team at Morgans, which have reiterated their bullish view on the company's shares.
What is the broker saying about Telstra's shares?
According to a note, the broker felt that Telstra delivered a "good result" in FY 2022. It said:
Delivering his last result, CEO Andrew Penn exits Telstra Corporation on a high note. The FY22 result came in at the upper end of guidance (underlying EBITDA +8% YoY), FCF was a beat and TLS raised its dividend (+0.5 cents) for the first time in years.
In light of this and its positive outlook, the broker has retained its add rating and lifted its price target to $4.60.
Based on the current Telstra share price of $4.00, this implies potential upside of 15% for investors over the next 12 months.
In addition, Morgans is now forecasting a 17 cents per share fully franked dividend in FY 2023. If we add this into the equation, this will mean a total return of almost 20% for investors.
'Strongest tailwinds in a decade'
Morgans is bullish on the Telstra share price largely due to its belief that the company is experiencing its best trading conditions in a decade. It explained:
Telco has the strongest tailwinds in a decade with an increasingly rational market, pricing rises and the criticality of telco increasingly recognised. This combines with an incoming CEO who currently seems unlikely to drastically change the business and the potential for value uplift (potential bids) following the legal restructure. We retain our Add recommendation and our Target Price lifts to $4.60.
