Buy, Sell, Hold – Telstra and TPG upgraded

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In the good books

Telstra (TLS)Upgraded to Buy from Holdby Deutsche Bank B/H/S: 2/3/3

Despite the negative impact from a new mobile entrant, Deutsche Bank believes Telstra is now an appealing investment, given a sustainable dividend yield of 6.6%, potential capital return and a 39% price/earnings discount to the market.

The broker upgrades to Buy from Hold. Deutsche Bank believes the negative impact of the entry of TPG Telecom (TPM) as a mobile network operator will be mitigated by Telstra's superior network and its incumbent position. Target is reduced to $4.51 from $4.87.

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