Telstra Group Ltd (ASX: TLS) stock has been a disappointing performer in recent months.
After peaking at a 52-week high of $4.46 in June, the telco giant's shares have been on a downward spiral.
This has left them trading at $3.79 today, which is just a fraction away from their 52-week low of $3.75.
While this is disappointing, has it created a buying opportunity for investors? Let's find out.
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Is Telstra stock a buy?
The market may not be feeling overly bullish on the company, but the same cannot be said for Australia's leading brokers.
A large portion of the broker community has the equivalent of a buy rating on the telco leader's shares with price targets offering double-digit returns.
In addition, they are expecting above-average dividend yields from its shares over the coming years.
For example, last month Macquarie put an outperform rating and $4.40 price target on its shares. This implies potential upside of 16% for investors.
And with Macquarie forecasting fully franked dividends of 18 cents per share in FY 2024 and 19 cents per share in FY 2025, investors can expect to receive a yield of approximately 5% over the next 12 months.
Who else is bullish?
A broker that is even more bullish is Morgan Stanley. It has an overweight rating and $4.75 price target on Telstra stock.
This suggests upside of 25% for investors from current levels. And if you include forecast dividends, you're looking at a total return of approximately 30% between now and this time next year.
To put that in context, a $20,000 investment would generate a return of $6,000 for investors if Morgan Stanley is on the money with its recommendation.
Overall, this could make Telstra worth considering if you're looking for some new portfolio additions this month.
