** Analysts at Jefferies lower PT on Australia's TPG Telecom TPG.AX to A$5.5 from A$5.7; maintain stock rating at "hold"

** Brokerage notes telco has been heavily discounting in prepaid operations to gain more subscribers; flags guidance update better-than-expected due to cost-outs program

** Says net subscriber additions in postpaid business were underwhelming despite promotional activity and spend on marketing

** Adds co's fixed broadband business, which contributes around 23% of EBITDA, still remains an overhang

** TPG shares gained ~5% in early trade on Tuesday but later reversed course to end over 1% lower

** Co flagged lower annual earnings and said it would return A$3 bln ($1.94 bln) to shareholders; to maintain FY25 dividend at FY24 level

** Jefferies adds that issue with TPG's prepaid business is that segment has lower average-revenue-per-user (ARPU) than postpaid, where customers are generally hunting for value

** Stock up 22.49% YTD

($1 = 1.5454 Australian dollars)

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com))