The Telstra share price is still trading 50% off its all-time high. Is right now a good time to buy?

Are Telstra shares a post-earnings buy today?

| More on:
A woman standing in a blue shirt smiles as she uses her mobile phone to text message someone

Image source: Getty Images

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

Key points

  • ASX 200 telco Telstra had a pleasing day on Thursday 
  • The Telstra share price remains more than 50% off its all-time highs in the late 1990s
  • We ask the experts if Telstra is a buy today 

The past two months have been rather kind to the Telstra Corporation Ltd (ASX: TLS) share price. Back on 14 June, the veteran ASX 200 telco was going for $3.75 a share.

Today, the Telstra share price closed at $4.10, having recorded a slight gain of 0.24% for the day. But the company's shares rose as high as $4.12 earlier in this Thursday's session.

That means that Telstra has gained a healthy 8.8% over the past two months. In fact, $4.12 a share is the highest Telstra has traded at since January.

And yet, we are still a long, long way from Telstra's all-time highs.

It's hard to imagine today, but there was a time when Telstra shares were priced at more than $8 each. That was way back in the late 1990s, just following the telco's listing on the ASX following its privatisation.

Even though that was more than two decades ago, the fact remains that Telstra shares are more than 50% off these all-time highs.

It's fairly hard to imagine that the Telstra share price is heading back to those halcyon days any time soon. But we can still see if Telstra shares are a buy today.

Is the Telstra share price a post-earnings buy?

One ASX broker who indeed thinks Telstra is a buy is Morgans. As my Fool colleague James covered this week, Morgans was pleased with Telstra's recent FY22 results.

The broker retained an add rating on Telstra shares and lifted its 12-month price target to $4.60. If that came to pass, it would see investors enjoy an upside of 12.2% from the current levels.

Another ASX expert picking Telstra as a winner is Ord Minnett senior investment advisor Tony Paterno.

As my Fool colleague Tony covered on Tuesday, Paterno also liked what Telstra had to say in its earnings report. He lauded the dividend increase to 8.5 cents per share for one thing.

Paterno also noted the following:

Telstra may soon monetise its InfraCo fixed business once the legal separation is complete in October 2022.

Recent transactions highlight that demand for high quality telecommunication assets, with long-term contracts and predictable cash flows, remain strong.

So lots to like about the current Telstra share price, if these two experts are to be believed anyway.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $47.25 billion. It has a trailing dividend yield of 3.9%.

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in 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 Scott Phillips.

More on Communication Shares

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Dividend Investing

Investing for passive income? Keep any eye out for that boosted Telstra dividend today!

If you own Telstra shares, keep an eye out for that juicy dividend payout today.

Read more »

Buy, hold and sell ratings written on signs on a wooden pole.
Communication Shares

Is Telstra stock a buy, sell, or hold?

Do experts rate Telstra as a buy or a sell?

Read more »

A young couple look upset as they use their phones.
Communication Shares

Aussie Broadband share price whipsaws as company denies rumours

Aussie Broadband shares are having a wild month indeed.

Read more »

A woman standing in a blue shirt smiles as she uses her mobile phone to text message someone
Dividend Investing

How are these ASX investors earning an almost 7% dividend yield on their Telstra shares?

Telstra increased its interim dividend payout by 6% from the prior year.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
Communication Shares

Aussie Broadband share price falls as legal proceedings commence against Superloop

Aussie Broadband is seeking an injunction against Superloop's instruction to sell 37 million shares.

Read more »

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
Communication Shares

Aussie Broadband share price tumbles after telco told to sell $47 million stake in a competitor

The telco has been left in a sticky situation.

Read more »

Young woman using computer laptop with hand on chin thinking about question, pensive expression.
Communication Shares

What might an Optus sale mean for Telstra shares?

Should I, as a Telstra shareholder, be worried about an Optus sale?

Read more »

a close up picture of a man's face with an expression of dumbfounded surprise as he holds his hand to his chin as if thinking further about what has just been revealed to him.
Communication Shares

Why are Superloop shares jumping 34% and Aussie Broadband shares sinking 25%?

Origin has caused these big moves today. But how?

Read more »