Broker up for Telstra

BEATEN-DOWN Telstra has a friend in Credit Suisse, which has lifted its rating and target price on the telco, claiming “value has emerged”.

The broker upgraded Telstra to outperform from a previous neutral rating and raised their target price to $4 from $3.90.

“The share price has adjusted downwards to reflect key headwinds such as the dividend re-base, NBN transition and higher mobile competition,” Credit Suisse analysts said in a client note yesterday.

“We believe that the majority of the negative newsflow is now out of the way and reflected in the share price.”

Armed with the telco’s mobile subscriber data, the analysts were optimistic that Telstra would remain resilient given competition in the sector has already started dialling up.