Telstra's Pricing Power Showing Signs of Fragility
Dow Jones
Aug 14
0133 GMT - Telstra's slightly soft annual growth in postpaid mobile subscribers is seen at UBS as a hint of fragility in its pricing power. While the stock retains its neutral rating, analysts Lucy Huang and Ailsa Lei tell clients in a note that they are increasingly cautious on the postpaid market and the ability for premium brands such as market-leader Telstra to keep raising prices above inflation. They reiterate their view that consumers' ongoing shift to the value end of the market is structural and now anticipate Telstra losing 18,000 postpaid subscribers a year in the medium-to-long term. UBS trims its target price on the stock 4.7% to 5.05 Australian dollars. Shares are down 0.6% at A$4.81.
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