** Analysts at Jefferies lower PT on Australia's Telstra TLS.AX to A$5.4 from A$5.5, while Morningstar lifts its fair value estimate by 6% to A$5

** Jefferies lowers earnings estimates by 2% for FY26-28 due to lower mobile subscriber additions, higher D&A costs at the telco

** Flags that is less concerned about the slowdown in subscribers for mobile business after co's conference call given the disruption caused by migration of customers to a new technology stack

** Adds result shows TLS effective in reducing costs, before the AI venture with Accenture

** Morningstar terms investors' concentration on the mobile result as curious, though the market is getting subdued

** But 1% fall in postpaid subscribers in FY25 was due to one-off events, while 3% fall in prepaid subscribers reflected conscious focus on improving yield - Morningstar

** Morningstar hails TLS' continuous pricing discipline having advocated for more focus on capital return

** Stock up 21% YTD

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))