Report
Brian Han
EUR 147.86 For Business Accounts Only

Telstra Managing Factors Within Own Control While External Headwinds Blow

External factors have been weighing on the stock price of narrow moat-rated Telstra, opening up a 6.2% fully franked yield and 15% discount to our unchanged AUD 6.00 fair value estimate.
Expectations of rising interest rates (especially in the U.S.) are reducing Telstra's comparative yield appeal, a dynamic that is reverberating across other defensive sectors. However, even after spending an extra AUD 1 billion per year in capital expenditure over the next three years, Telstra should still gene...
Underlying
Telstra Corporation Limited

Telstra is engaged in providing telecommunications and information services for domestic and international customers. Co.'s operating segments are Telstra Retail, Global Enterprise and Services, Telstra Operations, and Telstra Wholesale. As of June 30 2016, Co. provided retail fixed data services to 3.4 million customers, retail fixed voice services to 5.7 million and domestic retail mobile services to 17.2 million customers.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Brian Han

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