In morning trade the Telstra Corporation Ltd (ASX: TLS) share price is climbing higher and is up by around 1.5% to $4.49.
Today's gain is likely to be attributable to a positive research note out of Goldman Sachs which revealed that the investment bank has upgraded the telco giant's shares to a buy rating with a $5.00 price target.
According to the note, Goldman's analysts believe the combination of its dominant networks, its vast scale, and domestic-focused strategy puts Telstra in a position to successfully navigate the increasingly competitive market.
Furthermore, the investment bank sees significant cost-saving opportunities from self-help services. It believes the telco giant's $1 billion productivity program is conservative relative to global precedents.
Should you invest?
I completely agree with Goldman's view on this one and think Telstra is a great option for investors at the current share price.
As I have said a few times before, although the launch of a fourth mobile network from TPG Telecom Ltd (ASX: TPM) has shaken up the industry, I believe value-focused providers Optus and Vodafone will be impacted the most.
In light of this it would have to be my first choice in the industry at the moment. Especially with its shares currently providing investors with a trailing fully franked 6.9% dividend.
