Update shared on04 Sep 2025
Analysts maintain a cautious view on BT Group due to persistent concerns over Openreach’s declining external revenue and ongoing business uncertainty, resulting in an unchanged consensus price target of £2.10.
Analyst Commentary
- Bearish analysts highlight continued concerns about Openreach's external revenue, which transitioned to decline in 2024/25 with expectations for further deterioration.
- Bearish analysts raise price targets modestly, reflecting recent share price performance rather than optimism about business fundamentals.
- Reduced downside risk as negative factors may be priced in, prompting slightly higher price targets despite maintaining cautious stances.
- No change in overall negative view on the company's prospects despite incremental target increases.
- Ongoing uncertainty regarding Openreach's outlook and its impact on the wider BT Group valuation.
What's in the News
- BT Group announced the planned retirement of CFO Simon Lowth and the appointment of Patricia Cobian, currently CFO at Virgin Media O2, as his successor following a managed handover.
- BT Group is exploring a potential takeover of TalkTalk amid the latter's severe financial distress, with internal discussions still at an early stage and no approach yet made.
- A BT-TalkTalk combination would strengthen BT’s market share to around 36%, particularly at the value end, but would likely face regulatory scrutiny and potential competitive protests.
- TalkTalk’s financial instability is affecting BT’s Openreach unit, leading to customer losses and payment issues; regulatory bodies are monitoring the situation closely to prevent broadband market disruption.
Valuation Changes
Summary of Valuation Changes for BT Group
- The Consensus Analyst Price Target remained effectively unchanged, at £2.10.
- The Future P/E for BT Group remained effectively unchanged, moving only marginally from 15.47x to 15.45x.
- The Consensus Revenue Growth forecasts for BT Group remained effectively unchanged, at -0.9% per annum.
Disclaimer
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