ATMstockresearch

ATM Strategy Initiates BUY on TLS

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ASX:TLS   TELSTRA GROUP LIMITED
Around mid-March TLS pulled back to $2.80 mark at the back drop off Covid 19 Emotional Selloff. From the peak of $3.94 in February to the lows of $2.80 in March created a huge opportunity equally for the dividend income seekers and capital growth chasers. Current technical analysis shows the stock should find strong support @ $2.97. We feel $2.99 is a good entry point at the time of analysis with lower downside risks. Due to slow recovery we see in the short term the stock has resistance @ $3.20 and once that is tested and broken the stock will move towards @ $3.40 in the medium term. The stock offers an attractive dividend yield at roughly 5.2%. As shown in our fundamental analysis currently the stock is offering an attractive price to earnings ratio of 16.9x, decent dividend yield, moderate debt levels and defensive and consistent earnings stream, with enough conviction we at ATM strategy upgrades TLS to a BUY
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