Citi has lifted its price target on BT Group PLC (LSE:BT.A) to £1.75 from £1.40, reflecting a broader sector re-rating, but maintained its sell rating on the FTSE 100 telecoms group, arguing that consensus forecasts remain too optimistic across a range of key metrics.
The US bank said the market is too bullish on BT's medium-term revenue, consumer EBITDA, earnings per share and normalised free cash flow, but cautioned that fourth-quarter results on 21 May are unlikely to resolve any of those debates.
Citi expects BT to guide for EBITDA growth in 2026/27 at that update while reiterating its target of approximately £2.0 billion in normalised free cash flow, a combination the broker said is unlikely to act as a materially negative catalyst in the near term.
Longer-term caution centres on structural challenges facing the UK telecoms market, which Citi said underpins its negative stance despite the target price increase.