Broker Numis is convinced communications giant BT Group plc (LON:BT.A) is undervalued, and repeats a 'buy' on the shares, targeting 390p (current price: 282p).
An investor meeting it hosted with chief executive Gavin Patterson only bolstered this belief, said the broker, as it ran through some of the main reasons to be positive.
READ: BT could benefit as Ofcom displays softer stance on regulatory plans, say analysts
Growth prospects are good in the business and public sector space which accounting for 29% of the business, says analyst John Karadis.
He highlights BT's superior networking capabilities to other firms and notes that local authorities aim to serve citizens on a 'cradle to grave' basis so BT can "leverage its multi-sector expertise".
In the fibre infrastructure segment, Openreach, which accounts for 24%, the broker says the firm will soon know which service providers want the FTTP (fibre to the premises) service that the business is offering.
READ: BT Group’s Openreach subsidiary reportedly in talks with Vodafone about a joint investment in new ultrafast fibre-optic broadband
Numis also notes that the government could legislate to force service providers to abandon copper, and Openreach would not object to this.
Numis also highlights BT's 4G network extension for the UK's emergency services gives the group a 'lasting' competitive advantage as it will be used by consumers and businesses also.
BT shares eased 0.18% lower on the day, to stand at 282.05p.