TPG Telecom Shares Rise as Defensive Telco Draws Buyers in Market Selloff as Investors Eye Cash Flow Recovery

SYDNEY — Shares of TPG Telecom Ltd. rose 2.2% on Friday, as investors favored defensive sectors during a broad market selloff driven by a global retreat from artificial intelligence stocks.

TPG shares gained 9 cents to close at A$4.10, the session high, after trading as low as A$4.01. About 3.4 million shares changed hands, valuing the company at about A$8 billion.

The gain came as the broader market fell. The ASX 200 fell about 0.5% to 9,020 points. Defensive pockets of the market held steady while miners and tech stocks slumped.

TPG did not release price-sensitive news on Friday.

Steady recovery

The shares have climbed in recent days. TPG closed at A$3.90 on Nov. 2. Friday's close is the stock's strongest level in recent weeks, though it remains about 25% lower than a year ago.

The stock hit record lows earlier this year. In July, TPG shares fell to a fresh all-time low of A$3.50.

Part of the slump reflected a large capital return. TPG returned A$3 billion to shareholders, or A$1.61 a share, after selling its fibre assets and enterprise business to Vocus for about A$4.7 billion, causing its shares to fall about 33% on the ex-dividend date in November last year.

Results and guidance

The company's latest results showed progress. First-half EBITDA rose 4.5% on a pro forma basis, mobile service revenue grew 3.1%, and the interim dividend was raised to 10 cents from 9 cents.

TPG guides full-year 2026 EBITDA of A$1.665 billion to A$1.735 billion, implying about 4% growth. Capital spending is set to decline to A$550 million to A$650 million from fiscal 2027 as 5G and IT spending ends.

Analyst views

Investing.com reported a Buy consensus from 12 analysts, with an average 12-month target of A$4.093, a high estimate of A$4.70 and a low of A$3.60. At Friday's close, the stock has reached that average target.

Not all analysts are convinced. Morningstar's bear case notes that TPG's service levels are seen as less attractive than some peers, and that market share gains have been driven by pricing.