The consensus analyst price target for BT Group has decreased slightly, falling by £0.03 to £2.07. Analysts cite sector downgrades and expectations of slower revenue growth as key drivers for the revised outlook.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlight recent increases in the price target, reflecting expectations for strategic value within certain BT Group business segments.
- Opportunities for share price outperformance are seen in potential near-term merger activity within the telecom sector.
- The company's valuation remains supported by ongoing transformation efforts and possible operational improvements.
- Bearish analysts cite sector-wide downgrades and anticipate slower revenue growth ahead, prompting more cautious outlooks.
- Some express concern over deteriorating external performance, particularly in Openreach's business, which is expected to decline further into 2024 and 2025.
- Multiple downgrades in recent research have shifted overall sentiment toward BT Group, with lower price targets reflecting execution risks and margin pressures.
What's in the News
- BT and Infobip are expanding their global partnership to deliver AI-powered, advanced communication services for multinational enterprises. The collaboration combines BT's global voice and inbound contact capabilities with Infobip's cloud communications platform. This partnership offers integrated voice and messaging solutions for customer engagement worldwide. (Key Developments)
- As part of the expanded partnership, Infobip has been appointed as an authorised reseller of BT's International Contact Global (ICG) services. BT will also offer Infobip's messaging services to its customers. Organizations can now access telephone numbers in more than 130 countries and manage inbound calls in over 180 countries. (Key Developments)
- BT Group announced a planned executive change. Simon Lowth, Group Chief Financial Officer, will retire following nine years in the role. Patricia Cobian, currently CFO at Virgin Media O2, has been appointed to succeed him and will join BT Group in 2026 after an orderly transition. (Key Developments)
Valuation Changes
- The Fair Value Estimate has decreased slightly from £2.10 to £2.07.
- The Discount Rate has risen from 7.08% to 7.32%.
- The Revenue Growth projection has declined marginally, moving from -0.86% to -0.90%.
- The Net Profit Margin forecast has edged down from 8.47% to 8.31%.
- The Future P/E Ratio has increased modestly from 15.45x to 15.67x.
Disclaimer
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