Like many ASX shares of late, the Telstra Corporation Ltd (ASX: TLS) share price has been through the washer. Telstra shares closed today's session at $3.83, up a pleasing 2.13% for the day. But over the past five trading days, Telstra has been as high as $3.90 a share and as low as $3.67.
Despite this volatility, the Telstra share price is actually flat if we just take the bookend prices of this period.
But perhaps investors should have taken advantage of this volatility. That's certainly what some ASX brokers are implying at the moment.
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Brokers name Telstra shares as a buy, despite recent volatility
One is Morgans. As my Fool colleague James covered this week, Morgans is currently bullish on Telstra shares. This ASX broker recently rated Telstra as an "add", replete with a 12-month share price target of $4.56.
With Telstra's T25 cost-cutting program now underway, Morgans is pleased with the company's progress in this area. The broker is also predicting that the telco will be able to keep its annual 16 cents per share dividend flowing across FY2022 and into FY2023, further boosting returns.
For argument's sake, let's assume Morgans is accurate with its share price prediction (by no means guaranteed). That means this week's volatility has presented a compelling buying opportunity.
At the current Telstra share price of $3.83, investors will enjoy an upside of 19% over the next 12 months if Telstra does indeed rise to $4.56 a share. But if an investor who took advantage of the recent volatility and bought in at $3.67 a share, the potential upside would stretch to more than 24%.
Morgans' fellow broker Ord Minnet is even more bullish on Telstra. As my Fool colleague Tristan also covered recently, Ord Minnet has a buy rating on Telstra, complete with a price target of $4.85. If that played out, investors would be looking at an upside of 26.6% on current prices. That extends to 32% for our hypothetical 'buy-the dip' buyer this week.
So despite the recent share price volatility, that's what two of the ASX's top brokers are anticipating for the Telstra share price going forward. But only time will tell if these brokers are proven right.
At the current Telstra share price, this ASX 200 telco has a market capitalisation of $44.3 billion, with a dividend yield of 4.17%.
