** Jefferies cuts telco TPG’s TPG.AX PT while sticking with bigger rival Telstra's TLS.AX rating, citing stronger earnings yield at TLS over time

** Trims TPG’s PT to A$3.90 from A$5.50 at ‘Hold’ rating; TLS at ‘Buy’ with A$5.40 PT

** Brokerage says TLS' strong cash flow leaves room for additional capital returns beyond FY26

** Also, favours TLS over TPG, flagging the latter’s greater exposure to NBN churn

** YTD, TPG is up 15.6%, overshadowed by the gains of TLS of ~22%

(Reporting by Kumar Tanishk in Bengaluru; editing by Diane Craft)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))