“After a major turnaround, Telstra has emerged in good shape with strong earnings momentum and a strong balance sheet,” Raymond said.
“In late CY22, shareholders vote on Telstra’s legal restructure, which opens the door for value to be released. TLS currently trades on ~7x EV/EBITDA.
“However some of TLS’s high quality long-life assets like InfraCo are worth substantially more, in our view.
“We don’t think this is in the price so we see it as value generating for TLS shareholders.
“This free option, combined with likely reputational damage to its closest peer following a major cybersecurity incident, means TLS looks well placed for the year ahead,” Raymond said.
TELSTRA (TLS)
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