Telstra’s Big Rerate – Is It the New Cba?

Up 30% in a year – but is it still a buy, or time to hold?

Telstra is suddenly the most exciting stock on the ASX. Hard to believe? Last year it was CBA – this year, it’s Telstra.

The share price is up over 30% in 12 months. They’ve released a new five-year plan (a bit of a yawn, if we’re honest), but just the mention of AI seems to have given the stock a fresh shine.

Brokers are starting to call it overvalued. Sound familiar? It’s the same as CBA last year – a strong run, mostly Hold ratings, and only one mainstream Buy.

So what’s driving it? The same thing that drove the banks: quality, sustainable earnings, and a lack of alternatives. Investors are happy to pay up for consistency, especially when the yield is above 5% including franking.

It’s not a raging Buy. But it’s also not one to sell just because brokers are spooked by the valuation. For now, Telstra joins the banks as one of the most reliable income stocks on the market.

This video was filmed on the 28th of May 2025.