Goldman Sachs analysts evidently have an abundance of positivity for BT Group PLC (LSE:BT.A), and have highlighted what they see as a strong performance for its infrastructure business.
Repeating a ‘buy’ rating for the British telco, Goldman analyst Andrew Lee has raised his free-cash-flow forecasts for BT by 3%-4%.
The analyst pointed to ‘Equinox 2’ - BT’s wholesale fibre offer design to expediate the transfer of ISPs to fibre - and greater-than-expected inflation-linked wholesale pricing boosts as catalysts.
“BT’s Digital Infrastructure fibre monetisation is running ahead of our bullish expectations,” the Goldman analyst said in a note to clients.
“Ramping fibre demand, pricing power and reduced price regulation drive material Openreach ARPU growth, a 10% FY23-28E CAGR. This supports inflecting group growth and returns. It also helps BT mitigate cost inflation pressure with inflation-linked pricing," he added.