Market Hanging Up on Telstra but We Maintain Connection

Telstra - Buying Opportunity or Value Trap?

Telstra: Good News as Roaming Risk Removed. TPG Risk Manageable. Dividend to Be Maintained.

Telstra: Strong Cashflows Secure Ongoing Yield

Telstra's Slower Growth but Still a Reliable Dividend Stock

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Equity Bottom-Up

We maintain our AUD 6.00 fair value estimate on narrow moat-rated Telstra, despite its disappointing fiscal 2017 first-half result. The 1.7% lift in underlying EBITDA to AUD 5,361 million was below expectations, while "continuing" net profit after tax, or NPAT, fell 11.8% to $1,785 million.Our thesis is unchanged on Telstra. The solid customer gains show it is competing effectively in a fierce market. We believe it will continue to do so on the strength of its infrastructure, scale and balance sheet (net debt/EBITDA of 1.4 times versus upper comfort level of 1.8). NBN's long-term impact is a "known known" danger to the tune of AUD 2 to 3 billion EBITDA hit per year. We believe Telstra can execute on its plans to plug that hole over time through organic growth, productivity, new ventures and strategic investments.Analyst: Brian Han

We maintain our AUD 6.00 fair value estimate on narrow moat-rated Telstra, despite its disappointing fiscal 2017 first-half result. The 1.7% lift in underlying EBITDA to AUD 5,361 million was below expectations, while "continuing" net profit after tax, or NPAT, fell 11.8% to $1,785 million.Our thesis is unchanged on Telstra. The solid customer gains show it is competing effectively in a fierce market. We believe it will continue to do so on the strength of its infrastructure, scale and balance sheet (net debt/EBITDA of 1.4 times versus upper comfort level of 1.8). NBN's long-term impact is a "known known" danger to the tune of AUD 2 to 3 billion EBITDA hit per year. We believe Telstra can execute on its plans to plug that hole over time through organic growth, productivity, new ventures and strategic investments.Analyst: Brian Han

Competition and NBN Hit Telstra in First Half but Our Long-Term Thesis Intact

Telstra Corp

Competition and NBN Hit Telstra in First Half but Our Long-Term Thesis Intact