Telstra (ASX:TLS) targets government's deep cyber-crime pockets

What's new at the telco? We take a look.

| More on:
A hooded person sits at a computer in front of a large map of the world, implying the person is involved in cyber hacking.

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

Key points

  • Telstra has launched two new cybersecurity products aimed at government customers   
  • The telco has installed a new specialist cybersecurity team to help implement the initiatives 
  • The telco's share price closed down nearly 1% today 

The Telstra Corporation Ltd (ASX: TLS) share price finished in the red on Thursday. This came after the company unveiled two new cybersecurity offerings aimed at government customers.

The company's share price has gained nearly 3% since market open on 1 February. However, it finished down 0.74% at $4.05 today.

Let's take a look at what's been happening with the telco lately.

Cyber focus

Telstra has released two new cybersecurity solutions aimed at local, state and federal government customers.

The two new capabilities, named Sovereign SecureEdge and Cyber Detection and Response, will be made available to customers in coming months, CRN reported.

The telco has a new specialist cybersecurity team that will help to implement the new initiatives, ARN reported.

Telstra enterprise head of government government Nicole McMahon said Telstra's technology and cyber team can provide federal, state and local government with secure, sovereign and intelligent networks to "keep Australia safe".

As we recover from the pandemic, reliance on digital services will remain critical. So it's important that we secure and protect our digital environment, as disruptions due to cyber attacks could significantly impact the economy and its recovery.

Telstra's capability to protect, detect and respond to cyber threats, coupled with the unparalleled visibility of threats we have from operating the largest and most complex network in Australia, uniquely positions us to be able to act on cyber issues in real time.

Meanwhile, Morgans now rates the Telstra share price as a "buy", my Foolish colleague James reported today.

Morgans has a price target of $4.56 on Telstra's shares. The broker is also predicting fully franked dividends per share of 16 cents in both the 2022 and 2023 financial year.

Meanwhile, earlier this week Telstra announced it had secured a new $100 million Internet of Things deal with the Intellihub group.

Telstra share price snapshot

The Telstra share price has gained nearly 28% over the past year but it has fallen 3% this year to date. It has gained 1.76% in the past week but has fallen 2.64% over the past month.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned nearly 7% over the past year.

Telstra has a market capitalisation of about $47.6 billion based on the current share price.

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 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 Technology Shares

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

Here are 2 exciting ASX shares rated as buys

These shares are highly rated by brokers. Let's find out why.

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
Technology Shares

Is this the decade of the data centre? One ASX 200 stock that could benefit

Let's see why one leading broker thinks this stock could be destined for big things.

Read more »

A human-like robot checks out market performance on a laptop, indicating the rise of AI shares.
Technology Shares

3 top performing ASX AI shares for your watchlist

Have you positioned your portfolio to capitalise on the next tech revolution?

Read more »

A man with a wide, eager smile on his face holds up three fingers.
AI Stocks

3 reasons to buy NextDC shares today

A leading expert forecasts more growth to come for NextDC's rebounding shares.

Read more »

A share market analyst looks at his computer screen in front of him showing ASX share price movements
Technology Shares

Why this $3.9 billion acquisition makes Xero shares a buy today

A leading expert forecasts that Xero’s $3.9 billion investment is about to pay off.

Read more »

Three young people in business attire sit around a desk and discuss.
Small Cap Shares

Tiny tech: 3 ASX small-cap shares with new ratings

Toby Grimm of Baker Young and Peter Day of Sequoia Wealth Management share their new ratings.

Read more »

Smiling young parents with their daughter dream of success.
Technology Shares

Could Life360 shares rise to $37.50?

Bell Potter has given its verdict on this tech stock.

Read more »

Man smiling at a laptop because of a rising share price.
Technology Shares

Investors should put these 2 top ASX tech shares on the watchlist

Looking for growth? These two stocks are delivering.

Read more »