BT Group (BT.A)

Sector:

Telecom Operators

Index:

FTSE 100

109.65p
   
  • Change Today:
      0.40p
  • 52 Week High: 160.35
  • 52 Week Low: 102.30
  • Currency: UK Pounds
  • Shares Issued: 9,952m
  • Volume: 13,693,708
  • Market Cap: £10,912m
  • RiskGrade: 170

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 109.65p
Change Today 0.40p
% Change 0.37 %
52 Week High 160.35
52 Week Low 102.30
Volume 13,693,708
Shares Issued 9,952m
Market Cap £10,912m
RiskGrade 170

BT Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
39.55% above the market average39.55% above the market average39.55% above the market average39.55% above the market average39.55% above the market average
66.67% above the sector average66.67% above the sector average66.67% above the sector average66.67% above the sector average66.67% above the sector average
Price Trend
42.51% below the market average42.51% below the market average42.51% below the market average42.51% below the market average42.51% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Income
84.62% above the market average84.62% above the market average84.62% above the market average84.62% above the market average84.62% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
75.62% below the market average75.62% below the market average75.62% below the market average75.62% below the market average75.62% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average

What The Brokers Say

Strong Buy 5
Buy 7
Neutral 2
Sell 1
Strong Sell 2
Total 17
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 Final
Ex-Div 28-Dec-23 03-Aug-23
Paid 02-Feb-24 13-Sep-23
Amount 2.31p 5.39p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 8,012,338 @ 109.65p
16:35 14,314 @ 109.65p
16:35 7,333 @ 109.65p
16:35 13,248 @ 109.65p
16:35 160 @ 109.65p

BT Key Personnel

CFO Simon Lowth
CEO Allison Kirkby
Chair Adam Crozier

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