---
title: "BUZZ-Morningstar hikes Aussie Telstra's fair value, bets on “boring” resilience in tech era"
description: "Morningstar raises Telstra's fair value by 8% to A$5.40, citing its earnings resilience and lower capital costs. Despite tech growth trends, Telstra's defensive role in connectivity remains appealing."
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/268864898.md"
published_at: "2025-12-07T19:54:18.000Z"
---

# BUZZ-Morningstar hikes Aussie Telstra's fair value, bets on “boring” resilience in tech era

> Morningstar raises Telstra's fair value by 8% to A$5.40, citing its earnings resilience and lower capital costs. Despite tech growth trends, Telstra's defensive role in connectivity remains appealing. The "Connected Future 30" plan aims to streamline operations, while share buybacks boost EPS and dividends. Telstra's stock is up ~22% YTD, supported by dependable dividends and a strong balance sheet.

Morningstar lifts Telstra’s (TLS.AX) fair value, citing a lower weighted avg cost of capital of 6.5% vs 6.8% to reflect the telco’s stronger earnings resilience

Ups fair value by 8% to A$5.40, saying that during a frenzy for tech-driven growth, the telco’s “boring” defensiveness still holds appeal given its connectivity role in a digital world

Says co’s “Connected Future 30” plan aims to reshape the telco into a leaner operator focused on core strengths, though management bristles at any notion of “shrinking to greatness”

However, flags that TLS is shrinking share capital to lift EPS and sustain dividend, having share buybacks running Nevertheless, adds that co’s appeal rests on “dependable”, steadily rising dividends underpinned by a strong balance sheet

Stock up ~22% YTD

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| How Investors May Respond To Telstra Group (ASX:TLS) Lifting Dividends And Expanding A$1.25b Buyback | Telstra Group has reported a slight increase in sales and net income for the half-year ending December 31, 2025, alongsi | [Link](https://longbridge.com/en/news/276884989.md) |

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.