The Telstra Corporation Ltd (ASX: TLS) share price has continued its positive run and is up a further 2% to a 52-week high of $3.64 on Thursday.
This means that the telco giant's shares have now climbed 28% since the start of the year.
Why is the Telstra share price up 28% in 2019?
Investors have been fighting to get hold of the company's shares this year thanks to a series of positive developments.
One was its stronger than expected half year result in February which has left the company well-placed to achieve the top end of its underlying FY 2019 EBITDA guidance.
Another catalyst was the return of rational competition in the telco market. Whilst NBN margins are still slender and weighing on its overall margins, news that Optus has increased the prices of its mobile plans has gone down well with the market.
This appears to suggest that Optus is now focusing on growing its average revenue per user metric rather than its subscriber count. As Optus has been the mobile price leader over the last three years, this lessening of competition could be a big positive for Telstra.
A further positive has been the ACCC's decision to block the merger between TPG Telecom Ltd (ASX: TPM) and Vodafone Australia. Whilst this merger could still go ahead if their appeal in the Federal Court is a success, the delay has given Telstra an opportunity to cement its position as a leader in 5G.
And with 5G internet being seen as the next cash cow for telco companies, this is yet another positive for Telstra and, along with its cost cutting plans, could underpin modest underlying profit growth over the next few years.
Is it too late to invest?
One broker that still thinks Telstra's shares can go higher is Goldman Sachs. According to a note out of the investment bank this morning, it has retained its conviction buy rating and $3.90 price target.
This price target implies a total potential return of ~11.5% over the next 12 months.
