UBS has downgraded Telstra Corporation Ltd (ASX:TLS) from Buy to Neutral and cut its price target to $4.50 from $4.60, citing limited upside as the share price nears fair value.
While its investor day showcased strong demand, AI investment and new KPIs, analyst Phil Campbell says it is “time for a pause” and is cautious on the industry’s ability to lift return on invested capital.
Telstra shares have outperformed the ASX by 15% over six months but now trade in line with fair value, with an EV/EBITDA of 7.4x—on par with its five-year average and 14% above global peers.