Analysts at Jefferies have maintained their ‘buy’ rating for the Australian telecommunications company, Telstra Group (ASX:TLS).

Their confidence in the company stems from their anticipation of increased market shares in the mobile business sector.

The experts predict that Telstra will sign more long term contracts for its infrastructure unit, particularly given the company’s stated decision against divestment.

On Thursday, Telstra put off selling a stake in its physical infrastructure unit, InfraCo, which subsequently led to a 2.5% drop in its shares.

Jefferies commented, ‘We think the market was somewhat disappointed with the decision by management to keep InfraCo Fixed assets’.

Nonetheless, the brokerage perceives the company’s decision not to divest the unit as a sensible one, given the demand from hyperscalers needed to bolster artificial intelligence in the sector.

Despite this optimism, Jefferies has lowered its earnings per share forecasts by 0.4% for FY24 and by 6.3% for FY25, citing reasons of increased depreciation and amortization costs.

It has also reduced its price target by 17% to A$4.78 per share.

Yet, so far this year, Telstra’s stock has seen a rise of 3.5% up to the last closing.

Telstra Group (ASX:TLS) is a telecommunications and information services company headquartered in Melbourne, Australia.