BT Group PLC (LSE:BT.A) received some support for its strategy of rolling out fibre to the home as quickly as possible.
Citi said the approach is the correct one even if it temporarily derails the telco’s ability to hit free cash flow (FCF) targets.
In a note entitled ‘Right strategy, deep value, temporary headwinds’, the American bank described the pain as temporary.
In the meantime, BT is delivering earnings growth, while the headwinds should ‘partly reverse’ from 2025, it added.
“As such the asset quality is improving, core earnings are well supported and growing, while capex is at its peak and way above any other major European telco due to BT's rapid deployment and full transparency on investment (no JVs or acquisitions of fibre),” Citi added, reiterating its ‘buy’ rating.
The shares rose 1.8% to 147.62p. Of the 18 banks and brokerages following BT, 12 are positive on the stock. The consensus price target is 193p.