Telstra upgraded to "buy"

09/13/06 - Deutsche Securities

LONDON, September 13 (newratings.com) - Analysts at Deutsche Bank Securities upgrade Telstra Corporation (TSTA) from "hold" to "buy." The target price has been raised from AUD3.90 to AUD4.

In a research note published yesterday, the analysts mention that the recent announcement of subscription-based homeline plans, along with the already reported rise in the company’s retail broadband market share, indicates Telstra’s ambitious strategy to restrict the loss of PSTN revenues to call resellers and ULL-based competitors. The regulatory risk for the company has been reduced with the wholesale market becoming more contestable, the analysts say.