Telstra Group (ASX:TLS) held an advantage over TPG Telecom (ASX:TPG) as National Broadband Network (NBN) data shows challenger brands are still taking market share from the major players in the September quarter, after the speed boost initiative, according to a Friday Jefferies note.

Jefferies said it prefers Telstra, given its lower exposure to customer churn on the National Broadband Network.

Telstra generates a higher earnings yield of around 6%, compared with about 5% for TPG, based on long-term trends, and Telstra's strong cash generation suggests it can continue funding additional capital returns after fiscal 2026, the note added.

Euroz Hartleys kept a buy rating on Telstra with a price target of AU$5.40.

It kept a hold rating on TPG Telecom with a lower price target of AU$3.90 from AU$5.50.

Telstra shares rose past 1% in recent Monday trade, while TPG Telecom shares fell almost 1%.