BT Group has had its price target trimmed by Deutsche Bank, which says there are still major uncertainties over how the fibre roll-out will turn out.
Shares have done well year-to-date, the bank adds, on a better outlook for UK taxes, something that was confirmed in the last Budget.
BT will now pay no UK tax for a further three years on top of the last two.
“Tax relief on an investment that had to be made regardless, in our view, was serendipitous alongside high CPI as a boost to both wholesale and consumer retail pricing.”
Energy and wage costs have been a headwind but BT delivered on 2023 guidance - with a little help from BT Sport deconsolidation and supply chain financing initiatives.
Hold remains the broker’s view but the target price is reduced to 145p from 150p.