BT Group plc·Communication Services

UBS has reiterated its 'sell' rating on BT Group PLC (LSE:BT.A) with a revised price target of 175p, up from 140p, arguing that persistent revenue declines will prevent the telecoms giant from hitting its long-held target of £3 billion in annual free cash flow by the end of the decade. The investment bank raised its target purely to reflect a broader re-rating of the European telecoms sector rather than any improvement in BT's fundamentals, and forecasts the stock will fall around 19% from its current level of 216p over the next 12 months.

Citi has lifted its price target on BT Group PLC (LSE:BT.A) to £1.75 from £1.40, reflecting a broader sector re-rating, but maintained its sell rating on the FTSE 100 telecoms group, arguing that consensus forecasts remain too optimistic across a range of key metrics. The US bank said the market is too bullish on BT's medium-term revenue, consumer EBITDA, earnings per share and normalised free cash flow, but cautioned that fourth-quarter results on 21 May are unlikely to resolve any of those debates.

The recent BT Group PLC share price rally has left the telecoms giant looking vulnerable, with Deutsche Bank reiterating its 'sell' rating and warning that investors should not mistake a run of good fortune for genuine defensive strength. Analyst Robert Grindle acknowledged the FTSE 100 company has benefited from two tailwinds this year, namely telecoms' relative defensive stature.

BT Group PLC (LSE:BT.A) has announced a leadership reshuffle across two of its core business units, with Katie Milligan set to become chief executive of Openreach from 1 April. Clive Selley, the current Openreach CEO, will move to head BT International.

BT Group PLC's latest update shows progress on fibre installations, but revenue pressures continue to drag. UBS analyst Polo Tang called it a “very weak” quarter on the top line, with earnings only meeting expectations thanks to cost savings.

BT Group share price rose by over 3% on Thursday after the company published its financial results. It rose to 210p, its highest level since September last year, and ~180% above its lowest level during the pandemic.
BT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through Consumer, Enterprise, Global, and Openreach segments. The Consumer segment offers landline, mobile, broadband, and TV services under the BT, EE, and Plusnet brands. The Enterprise segment provides network solutions to communications providers; and sells communications and IT services to businesses and public sector organizations. Its services include fixed voice, mobile, fixed connectivity, and IT services. The Global segment secures and manages network and cloud infrastructure and services for multinational corporations. It also offers voice and data network services, such as managed, security and network, and IT infrastructure services. The Openreach segment provides fixed connectivity access network that connects homes, mobile phone masts, schools, shops, banks, hospitals, libraries, broadcasters, governments, and big and small businesses. This segment also offers last mile, a service over the local access network; and installs and maintains fiber and copper communications networks from exchanges to homes and businesses. BT Group has strategic partnership with Microsoft. The company was formerly known as Newgate Telecommunications Limited and changed its name to BT Group plc in September 2001. BT Group plc was incorporated in 2001 and is headquartered in London, the United Kingdom.
Communication Services
Telecommunications Services
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2010-04-05
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