Update shared on18 Oct 2025
BT Group’s updated analyst price targets reflect a modest range of downward and upward revisions, now spanning from £1.40 to £2.25 per share. Analysts cite imminent telecom sector mergers and declining Openreach performance among the key factors behind these changed outlooks.
Analyst Commentary
Recent analyst updates on BT Group highlight a mix of cautious and optimistic outlooks, reflecting changing market dynamics and company performance. Price targets and ratings adjustments focus on expectations for telecom sector consolidation and concerns over Openreach's trajectory.
Bullish Takeaways
- Bullish analysts see sector mergers as a potential catalyst for share outperformance in the near term. This could provide opportunities for BT Group to benefit from improved industry dynamics.
- The upward adjustment of price targets, though modest, suggests that some believe BT Group has scope for valuation upside under the right market conditions.
- Resilient core operations outside of Openreach are seen as supporting the company's medium-term growth prospects, particularly if competitive pressures ease.
Bearish Takeaways
- Bearish analysts raise concerns about the ongoing deterioration in Openreach performance. This trend is expected to continue into 2024 and beyond, with the potential to weigh on group earnings.
- Downward rating revisions reflect expectations for execution challenges, especially in navigating sector disruption and integrating benefits from potential mergers.
- The wide range of price targets indicates lingering uncertainty about BT Group’s ability to generate consistent growth and deliver shareholder value in a rapidly changing telecom environment.
What's in the News
- BT and Infobip are expanding their partnership globally to deliver AI-powered communication services to multinational businesses. The partnership will integrate voice and messaging capabilities backed by advanced conversational AI. (Client Announcements)
- Through the expanded BT and Infobip alliance, enterprises can unify customer contact centers into a single virtual network. This allows access to phone numbers in over 130 countries and call management in more than 180 countries. (Client Announcements)
- BT Group’s long-serving CFO, Simon Lowth, will retire after nine years. Patricia Cobian, current CFO at Virgin Media O2, has been named as his successor. The leadership transition is set for summer 2026 following an orderly handover. (Executive Changes, CFO)
- Patricia Cobian brings experience from major telecom mergers and financial leadership across Europe. She notably played a pivotal role in the Virgin Media and O2 merger. (Executive Changes, CFO)
Valuation Changes
- Discount Rate has risen slightly, moving from 7.32% to 7.70%.
- Fair Value remains unchanged at £2.07 per share.
- Revenue Growth projections are stable with a negligible change at -0.9%.
- Net Profit Margin is virtually unchanged, holding at 8.3%.
- Future P/E ratio has increased marginally from 15.67x to 15.84x.
Disclaimer
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