Could BT Group PLC (LSE:BT.A)’s share price double over the next year? It’s possible. Or at least this is the conclusion of the telecoms team at JP Morgan.
It pointed out that the stock has “aggressively yo-yoed” between one and two quid in recent times.
This, the American investment bank reckons, reflects a debate around BT's growth prospects, competition and return on capital.
It draws some succour from the performance of Dutch rival KPN, whose enterprise multiple (EV/EBITDA) has “progressively traded up” from 5 times to 7.5 times on 1-2% revenue growth.
JPM repeated its overweight recommendation and 275p a share price target.
Of the 21 banks and brokerages logged as following BT, 14 are positive on the stock. The consensus price target is 187p.
Mid-afternoon, the shares were trading sideways at 147.9p against a broader market down 2% amid worries over the financial health of America’s Silicon Valley Bank.