BT Group (BT.A)

Sector:

Telecom Operators

Index:

FTSE 100

171.55p
   
  • Change Today:
    -1.15p
  • 52 Week High: 205.60
  • 52 Week Low: 122.15
  • Currency: UK Pounds
  • Shares Issued: 9,919m
  • Volume: 5,495,751
  • Market Cap: £17,017m
  • RiskGrade: 170
  • Beta: 1.02

HSBC cuts rating on BT to 'reduce'

By Abigail Townsend

Date: Wednesday 13 Oct 2021

LONDON (ShareCast) - (Sharecast News) - HSBC has downgraded BT Group, citing potentially "major shifts" in the wholesale broadband market.
The bank, which has cut its rating to 'reduce' from 'hold', also lowered its target price, to 125p from 135p.

HSBC said that the wholesale broadband market - which BT dominates through its Openreach unit - had been stable for two decades, but change was now on the horizon.

It said: "BT's ambition and its investment plans are unquestionably bold. The company and its networks are set to be transformed within five years, creating much opportunity, in our view.

"And yet at this stage, the BT investment case rests largely in the hands of others. Specifically, the extent to which Virgin Media O2 decides to wholesale its network and whether Sky decides to use that network. This moves the crux of the debate to the potential for substantial shifts in the long-term wholesale broadband market - a topic that was off the radar until recently, but is now of significantly importance, in our view."

HSBC said it believed Virgin Media O2 would look to wholesale any FTTP (fibre to the premises) it builds, adding: "All our scenarios entail some wholesale market share loss for Openreach, but we are also assuming that Sky remains a customer, just a smaller one."

Looking ahead to the blue chip's interim results, due next month, the bank concluded: "BT is set to provide an update on the potential to establish a joint venture to finance FTTP past 5m rural premises.

"Should such a deal be announced, the market may look to the implied valuation for the whole of Openreach, but we think that any over-excitement would be premature, not least because any valuation would be subject to the same downward revisions if wholesale competition were to materially increase."

As at 1200 BST, shares in BT were off 1% at 143.55p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

BT Market Data

Currency UK Pounds
Share Price 171.55p
Change Today -1.15p
% Change -0.67 %
52 Week High 205.60
52 Week Low 122.15
Volume 5,495,751
Shares Issued 9,919m
Market Cap £17,017m
Beta 1.02
RiskGrade 170

BT Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend Not Available
Income Not Available
Growth
69.06% below the market average69.06% below the market average69.06% below the market average69.06% below the market average69.06% below the market average
66.67% below the sector average66.67% below the sector average66.67% below the sector average66.67% below the sector average66.67% below the sector average

What The Brokers Say

Strong Buy 13
Buy 0
Neutral 5
Sell 1
Strong Sell 4
Total 23
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

BT Dividends

  Latest Previous
  Interim Interim
Ex-Div 30-Dec-21 24-Dec-19
Paid 07-Feb-22 03-Feb-20
Amount 2.31p 4.62p

Trades for 08-Dec-2021

Time Volume / Share Price
13:01 1,655 @ 171.63p
13:01 1,189 @ 171.55p
13:01 1,234 @ 171.60p
13:00 2,000 @ 171.48p
13:00 111 @ 171.55p

BT Key Personnel

CFO Simon Lowth
CEO Philip Jansen
Chair Adam Crozier

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