TPG Telecom Ltd (ASX: TPG) is the second-largest telecommunications company listed on the ASX.
It provides communication services to residential users, small and medium enterprises, government, large corporate enterprises, and wholesale customers.
In the last month, its stock price has shed more than 3%.
Zooming out further, though, it has had a solid 2025, up 11% in that span.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 7.8% in that same period.
Optus outage could fuel TPG
Over the last week or so, The Motley Fool has covered the Optus outage.
For those unaware, in late September, a reported software maintenance update at the telco shut down the company's Triple Zero services.
According to media reports, up to 600 customers were potentially impacted.
Commenting on Optus' Triple Zero failure, independent telecoms analyst Paul Budde said (quoted by The Australian Financial Review), "Optus clearly does not have its house in order".
As a result, investors may be looking to snap up Optus' key competitors, which include TPG – ASX's second-largest telecommunications company.
Morgans upgrades its guidance
The team at Morgans seem to agree that the recent Optus outage could be good news for TPG shares.
The broker upgraded its rating to accumulate.
Following recent share price weakness, we upgrade TPG to an ACCUMULATE recommendation. Our target price remains unchanged at $5.50. Recent challenges facing Optus could benefit Vodafone's mobile growth while TPG's upcoming capital management initiatives could deliver share price upside.
The target price of $5.50 indicates an upside of approximately 9.43% from its share price of $5.03 at the time of writing.
Morgans isn't the only broker with an optimistic view.
Following strong earnings season results, Macquarie upgraded its guidance on TPG. It updated its 12-month price target for TPG Telecom shares to $5.60.
Elsewhere, TradingView has a 12-month price target of $5.46 and online brokerage platform SelfWealth lists it as undervalued by approximately 8%.
The company has also been a consistent dividend stock over the last 3 years, paying $0.18 per share.
