New 52-week low: Can Telstra shares bounce back in 2024?

Telstra has had an awful 2023. Will 2024 be any different?

| More on:
A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.

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

Although we're more than a month out from the end of 2023, we can still conclude, at least so far, that this year has been a tough one for Telstra Group Ltd (ASX: TLS) shares. Telstra began this year at just under $4 a share – at $3.95 to be precise.

By June, everything seemed to be going this ASX 200 telco's way, with Telstra clocking a new multi-year high of $4.46.

But as we approach the end of the year, the telco's shares have come markedly off the boil. Today, the telecommunications blue chip is back down to $3.78 a share at present, after touching a new 52-week low of $3.76 this morning.

This is some of the lowest share prices Telstra has traded at since mid-2021. Barring some epic December share price miracle, perhaps one heck of a Santa rally, it seems Telstra is heading towards a year to forget.

So what would it take for Telstra to have a better 2024 than it has over 2023?

Well, there's little doubt that it was the telco's full-year results from August that really took the wind out of Telstra shares' sails this year.

Why is the Telstra share price at a new 52-week low?

As we covered at the time, Telstra reported some objectively inoffensive numbers. Total income was up by 5.4% over FY2023, while Telstra also reported a 13.1% rise in net profits after tax to $2.1 billion.

Investors were even treated to a 3% rise in Telstra dividends over the 2023 financial year to a fully franked 17 cents per share.

However, it was another announcement that seemed to really put investors out. Telstra's management revealed that, after floating the idea for a while, it would not be pursuing a sale or divestment of the company's valuable InfraCo Fixed infrastructure assets.

The market had been hoping that the company would sell at least some of these assets off, which could have generated a huge windfall and allowed for a major capital return. However, Telstra's management decided to keep these assets in-house, for at least the time being. Telstra shares subsequently plunged in value, and have explored new lows ever since.

So how the Telstra share price performs next year will arguably rest on whether investors can, for want of a better phrase, get over this decision.

Let's say the telco continues to build on its healthy FY2023 full-year numbers and delivers some more healthy growth figures at its half-year results in February. This might be an easier task than it was this time last month, considering the recent woes of its major competitor Optus.

This could well provide the catalyst for a share price recovery going into March and April.

ASX broker reckons Telstra shares are a buy

One ASX broker reckons Telstra is on for a top year next year. As we discussed last week, broker Goldman Sachs is very bullish on Telstra shares indeed.

It recently gave the company a buy rating, alongside a 12-month share price target of $4.70. That would see investors enjoy a share price gain of more than 24% if accurate.

However, we'll have to wait and see what happens next year.

Motley Fool contributor Sebastian Bowen has positions in Telstra Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. 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

Happy couple with a car dealer.
Broker Notes

Goldman Sachs says buy despite this ASX 200 stock trading at a record high

Let's find out why.

Read more »

A happy woman stands outside a building looking at her phone and smiling widely
Communication Shares

Down 12% from their highs: Are Telstra shares a post-results bargain buy?

Is now the time to pounce on this telco giant's shares? Let's find out.

Read more »

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Earnings Results

Telstra shares tumble on half-year disappointment

The telco giant's half-year results fell short of expectations.

Read more »

man looks at phone while disappointed
Earnings Results

Telstra share price on watch amid earnings miss and guidance revision

Will the market be disappointed with the telco giant's update?

Read more »

A woman uses her mobile phone to make a purchase.
Communication Shares

Own Telstra shares? Here's your half-year results preview

Strong earnings growth could be reported by the telco giant this month.

Read more »

A smartly-dressed businesswoman walks outside while making a trade on her mobile phone.
Communication Shares

What could happen to Telstra shares if interest rates fall?

Should you be buying this telco giant's shares when the RBA cuts rates?

Read more »

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

Own Telstra shares? You could be on track for an 18% gain in 2024

One ASX broker reckons Telstra shareholders are headed for a fantastic 2024.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Communication Shares

Are TPG shares an unloved buying opportunity?

Should investors give this stock a chance?

Read more »