DNR Capital on why the market has got Telstra and the banks completely wrong
The circa $10 billion Brisbane fundie says market risks are leaning towards the downside as it looks for value the rest of the market has missed.
It might be one of Australia’s classic blue chip stocks, but the market has not been kind to Telstra in 2024.
The iconic telco is down almost 20% over 12 months, selling off further after it signalled major layoffs – but Scott Kelly from Brisbane’s DNR Capital thinks the market is thinking about the stock all wrong. “We think the markets misunderstood the announcement that was made,” he said,
Kelly spoke to Capital Brief as part of our Past Performance series, where we speak to top investors about their investing mistakes, contrarian bets and what lies ahead. A full transcript of the interview, lightly edited for brevity and clarity is available below.
Telstra's job cuts announcement triggered another selloff in the stock but Kelly, who manages DNR’s income fund, says the market has placed too much emphasis on the company's social licence as it looks to cut its cost base.
