** Morningstar lifts Telstra’s TLS.AX fair value, citing a lower weighted avg cost of capital of 6.5% vs 6.8% to reflect the telco’s stronger earnings resilience

** Ups fair value by 8% to A$5.40, saying that during a frenzy for tech-driven growth, the telco’s “boring” defensiveness still holds appeal given its connectivity role in a digital world

** Says co's "Connected Future 30" plan aims to reshape the telco into a leaner operator focused on core strengths, though management bristles at any notion of “shrinking to greatness”

** However, flags that TLS is shrinking share capital to lift EPS and sustain dividend, having share buybacks running

** Nevertheless, adds that co's appeal rests on "dependable", steadily rising dividends underpinned by a strong balance sheet

** Stock up ~22% YTD

(Reporting by Kumar Tanishk in Bengaluru; Editing by Cynthia Osterman)

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