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NS Telstra Corporation Ltd (ASX: TLS) Stock prices have achieved strong performance in 2021
Since the beginning of this year, the telco giant’s share has risen by an impressive 34%.
Why did Telstra’s share price rise 34% in 2021?
Investors are bidding high on Telstra’s share price this year as the outlook improves, supported by the T22 strategy and the newly announced T25 strategy.
The T22 was based on the transformation of the company, while the T25 aims to drive growth. As a result, management is targeting a combined annual growth rate of mid-single digits, which is the basis of EBITDA, and earnings per share (EPS) from 2021 to 2025.
The mobile business and its cost-cutting plans play a key role in this growth, but it’s not just the mobile business that drives it.
Expansion to the energy sector
At the T25 event, the company unveiled plans to launch a simple and sustainable integrated energy proposal through its Telstra Energy business. By 2025, we aim to become one of the top five energy retailers with more than 500,000 customers.
Also, given the relationship between 5.4 million households and 900,000 SMEs, this is considered an achievable goal.
But Telstra isn’t the only newcomer. Australian person Global energy giant Shell is also emphasizing today that it plans to enter the market in the near future. This leads to the disappointment of major energy retailers.
In fact, Australians believe that AGL and Origin should be nervous, saying, “The environment that newcomers plan to create is similar to the impact of the Internet on the gold river of printed newspapers.” Suggests.
Overall, these are interesting times for Telstra’s stock and energy markets.
Will energy drive Telstra’s (ASX: TLS) stock to new heights?
Source link Will energy drive Telstra’s (ASX: TLS) stock to new heights?