“Our research team recently added TLS to our Best Idea List,” said Raymond.
“Our analysts see limited downside (TLS is effectively trading at its long term multiple of ~6.5x EV/EBITDA), with upside potential from both earning growth and optionality from the legal restructure.
“The telco has the strongest tailwinds in a decade with an increasingly rational market, price rises and the criticality of telco increasingly recognised.
“This combines with a new CEO who currently seems unlikely to drastically change the business and the potential for value uplift (potential deals including divestments, acquisitions and/or partial sales) following the legal restructure,” Raymond said.

(Note: Telstra is currently trading under stock code TLSDA)

Telstra (TLS)

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