Update shared on 19 Nov 2025
Fair value Decreased 0.37%BT Group's analyst price target has been adjusted slightly lower to approximately £2.06 per share from £2.07. This reflects analysts’ updated views on sector dynamics and modest changes to growth and profitability expectations.
Analyst Commentary
Market analysts have recently provided a range of updates regarding BT Group's valuation and outlook. Their commentary reflects both optimism around certain growth drivers as well as ongoing concerns over operational and competitive risks.
Bullish Takeaways
- Bullish analysts raised price targets in response to the company’s demonstrated resilience and efforts to manage costs. This has provided some support for long-term valuation stability.
- Expectations for future merger activity in the sector are cited as near-term catalysts for potential share price outperformance.
- Steady operational execution and network developments have been referenced as signs of continued underlying business strength, even in the face of broader market challenges.
Bearish Takeaways
- Several analysts expressed caution by downgrading the stock’s rating and highlighted concerns over growth and the profitability outlook in a challenging market environment.
- Worsening performance for key segments, such as Openreach, has been noted as a drag on future earnings potential and valuation.
- Slower-than-expected improvement in core operational metrics has resulted in lower price targets, indicating muted expectations for a rapid turnaround.
- Uncertainty regarding BT Group's ability to respond to competitive pressures and execute effectively in a fast-evolving sector remains a key risk factor for their outlook.
What's in the News
- BT Group and Pindrop have launched a strategic partnership to deliver advanced voice security solutions for UK enterprise customers. This initiative addresses significant growth in contact centre fraud and the emergence of deepfake-driven threats. (Key Developments)
- BT Group plc has confirmed earnings guidance for fiscal year 2026, expecting revenue around £20 billion. (Key Developments)
- The company announced an interim dividend of 2.45 pence per share for the half year ended September 2025, payable in February 2026. (Key Developments)
- BT and CrowdStrike debuted BT Business Antivirus Detect and Respond, a cybersecurity service for small and medium-sized UK businesses. This service combines AI-driven protection with expert support to combat ransomware and data breaches. (Key Developments)
- BT and Infobip expanded their partnership to provide AI-powered global communication services for multinational businesses. This expansion enhances unified customer engagement and international voice capabilities. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has edged down from £2.07 to £2.06 per share, reflecting minor revisions to expectations.
- Discount Rate has risen slightly from 8.56% to 8.70%. This suggests a modestly higher perceived risk profile for the business.
- Revenue Growth projections have improved somewhat, shifting from -0.90% to -0.43%. This indicates less negative sentiment around top-line trends.
- Net Profit Margin estimates have increased modestly, moving from 8.31% to 8.44%.
- Future P/E (Price/Earnings) ratio has fallen from 16.22x to 15.10x. This reflects lower expected valuation multiples.
Disclaimer
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