The Telstra Group Ltd (ASX: TLS) share price had a rough month in April.
Shares in the S&P/ASX 200 Index (ASX: XJO) telco closed out March trading for $3.86 apiece. When the closing bell sounded the end of trading on 30 April, shares were changing hands for $3.67, down 4.9%.
This performance lagged the 3.0% losses posted by the ASX 200 in April.
Both the ASX 200 and the Telstra share price caught headwinds in April as investors began to dial back expectations on the timing and pace of interest rate cuts from the Reserve Bank of Australia and the US Federal Reserve.
Inflation, it seems, is not as easy to tamp back down as it was to stoke higher.
With a fully franked dividend yield of 4.9%, Telstra has been taking a harder hit than the benchmark index. That could be driven by income investors pulling money out of the ASX 200 telco in favour of lower-risk investments, like bonds or cash deposits.
Unfortunately, the pain has continued over the first two trading days in May.
Yesterday saw the Telstra share price close down 0.8%. In afternoon trade today, shares are down 0.8% trading for $3.61 apiece.
That represents a new two-year (plus) low for the stock.
So, is it time to pounce?
Is the Telstra share price a buy at two-year lows?
A number of analysts have a bullish outlook for the Telstra share price in 2024 and heading into 2025.
That includes the bunch over at Goldman Sachs, who noted, "Telstra is the incumbent telecom operator in Australia."
According to the broker:
We believe the low-risk earnings (and dividend) growth that Telstra is delivering across FY 2032 to FY 2025, underpinned through its mobile business, is attractive.
We also believe that Telstra has a meaningful medium-term opportunity to crystallise value through commencing the process to monetise its InfraCo Fixed assets, which we estimate could be worth between AU$22 to $33 billion.
Goldman's analysts added, "We see a strong rationale for monetising the recurring NBN payment stream, given its inflation-linked, long-duration cash flows could be worth $14.5 billion to $17.9 billion, with no loss of strategic benefit."
Goldman has a 'buy' rating on the ASX 200 telco with a $4.55 12-month target for the Telstra share price.
That represents a potential upside of 26% from current levels. And it doesn't include the upcoming dividend payments.
