What to watch at the Telstra (ASX:TLS) Strategy for the Future event this week

It could be a big week for this telco giant…

| More on:
A young woman in a red polka-dot dress holds an old-fashioned green telephone set in one hand and raises the phone to her ear representing the Telstra share price and the opportunity for investors in FY23

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Telstra Corporation Ltd (ASX: TLS) share price will be one to watch very carefully this week.

This is because on Thursday the telco giant is holding its eagerly anticipated Strategy for the Future Investor Day event.

What should you watch out for?

Ahead of the event, the team at Goldman Sachs has listed a few things that it believes could have an impact on the Telstra share price.

The first thing Goldman thinks investors should look out for are its earnings targets. It commented: "We expect a range of earnings targets to be provided, which could include: (1) Narrowing FY23 EBITDA aspirations to $7.5 to $7.9bn (GSe $7.7bn, Visible Alpha Consensus Data $7.5bn); (2) A new cost-out program to be quantified (GSe A$500mn+); (3) Group revenue/earnings targets for FY22-25 to be provided (i.e. low single digit rev growth vs. GSe +1.7% p.a.)."

The broker also expects some commentary around its dividend policy post its T22 strategy. Goldman said: "The ongoing debate around its post T22 dividend policy will be addressed. We expect a preference for franked dividends and buybacks to remain (over un-franked)."

Another subject that could boost the Telstra share price is the company's plan with its infrastructure assets. It explained: "We expect an update to be provided [on InfraCo], but this will be more strategy focused rather than incorporating specific commentary around the potential monetisation, given the corporate restructure is yet to be approved (vote by year-end).

Goldman Sachs also believes there could be commentary around the company's leadership post its T22 plan. The broker commented: "With current CEO Andrew Penn in his 7th year as CEO of Telstra, we believe commentary around the company's leadership post T22 could be provided."

Finally, in respect to its new strategy, the broker expects "a continuation of the current strategy (simplicity and customer focus, network leadership and improved efficiency) but with a tilt towards growth (such as Energy, Health, FWA, Enterprise 5G)."

Is the Telstra share price good value?

According to the note, Goldman Sachs remains bullish on the Telstra share price.

In fact, not only have its analysts reiterated their buy rating, but they have lifted their price target to $4.40.

Based on the current Telstra share price of $3.86, this implies potential upside of 14% over the next 12 months.

Furthermore, this potential return stretches to over 18% if you include the 16 cents per share fully franked dividend the broker is forecasting in FY 2022.

Should you invest $1,000 in Cochlear Limited right now?

Before you buy Cochlear Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Cochlear Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Share Market News

ASX shares in April: 8 key takeaways according to Macquarie

Here are eight key takeaways from April, according to a new note from the broker.

Read more »

A shocked man holding some documents in the living room.
Broker Notes

Macquarie's take on Judo Capital shares after suddenly falling 19% yesterday?

Judo Bank was the ASX's top-performing banking stock in 2024.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Broker Notes

5 top ASX stocks to buy in May

These stocks could be quality picks for investors this month according to analysts.

Read more »

Person pressing the sell button on a smartphone.
Broker Notes

Sell alert! 3 ASX shares the brokers are calling time on

Brokers say it's time to hit the sell button on these ASX shares.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Share Market News

What is next for ASX 200 shares after last month's upheaval?

Macquarie reveals its outlook for ASX 200 shares in May in a new research note published today.

Read more »

Happy young couple saving money in piggy bank.
Broker Notes

Invest $500 in these top ASX shares in May

Analysts think these shares could be in the buy zone for the month ahead.

Read more »

Person pointing finger on on an increasing graph which represents a rising share price.
Broker Notes

These ASX 200 shares could rise 30% to 40%

Let's see what analysts are saying about these buy-rated shares.

Read more »