BT Group was hitting the right numbers today as the FTSE 100 listed telco was upgraded by Citi.
Worries about ther impact of its heavy network investment on free cash flow generation, rising taxes and interest costs, as well as labour and energy overheads, have weighed heavily on the share price, which was especially weak in the second half of 2022.
But BT has some things that could move in its favour such as wholesale pricing, Citi suggests, while retail prices could see a significant move not just on the backbook (14%) but also on the frontbook as ISP (internet service provider) margins get squeezed.
'Buy' is the new rating with a price target of £1.60.
Shares were up 0.5% at 127.3p.