Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Numis reiterates ‘buy’ rating on BT as it believes consensus forecasts are “likely to start climbing"

The broker's analysts said they think the consensus expects no volume growth post an Ofcom price cut, which the analysts think is “unrealistic”
BT logo
The Numis analysts concluded that upgrades to consensus forecasts are likely to drive a strong share price recovery by BT in 2018

Numis Securities reiterated its ‘buy’ rating and 400p price target on BT Group PLC (LON:BT.A) today as it believes consensus forecasts are “likely to start climbing.”

In a note to clients, about “relatively uncontentious issues and arithmetic”, the Numis analysts said they do not “try again to call whether Ofcom will cut Openreach's price for '40/10' fibre access and hence (as the regulator agrees) hurt all-fibre deployment in Britain.”

READ: Past year unkind to BT after regulatory crackdown, says Deutsche Bank

They said, however, that they think the consensus expects no volume growth post an Ofcom price cut, which the analysts think is “unrealistic”.

The analysts also noted that consensus forecasts of pension top-ups required by BT have changed relatively little in the last seven quarters, which they think is “too bearish”.

They also said they think the consensus has ignored BT, noting that its turnaround in 'Public Sector' is near complete and that 'Business' is set to keep winning mobile market share.

Thus, the Numis analysts concluded, upgrades to consensus forecasts for BT are likely from now, and so BT's share price will recover strongly in 2018.

BT shares were lower, however, in lunchtime trading, down 1.2%, or 3.2p at 269.6p.

View full BT.A profile View Profile

BT Group plc Timeline

Related Articles

August 19 2018
BATM's Networks & Cyber division returned to growth in 2017

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use