Market Chatter: Telstra, TPG to See 'Constructive' 2026, Says UBS, AFR Reports

MT Newswires Live01-13

Telstra (ASX:TLS) and TPG Telecom (ASX:TPG) are expected to have another "constructive year" in 2026, supported by disciplined pricing and tighter cost control, which should lift returns on invested capital and release more cash for shareholder distributions, according to a Tuesday Australian Financial Review report, citing UBS Analyst Lucy Huang.

Huang noted that mobile price increases and leaner cost structures remain the key drivers, while a two-year "spectrum holiday" and a slowdown in 5G rollout spending are expected to reduce industry capital expenditure.

UBS expects Telstra to raise postpaid prices by about 4.5% in July, and TPG Telecom to lift prices by roughly 3% while noting that TPG faces a higher risk of customer churn, and both operators are expected to lose about 1% of the postpaid market share to mobile virtual network operators, the report added.

UBS reaffirmed neutral ratings on TLS and TPG while raising the target price of TLS to AU$4.90 and lowering TPG's price target to AU$3.80.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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