Berenberg gave a lift to BT Group PLC (LON:BT.A) shares on Friday, raising its target price for the telecoms giant to 270p from 260p and repeating a ‘buy’ rating on the stock on ‘semi-soft’ Brexit hopes.
In mid-morning trading, the FTSE 100-listed firm’s shares were 0.7% higher at 225.30p.
In a note to clients, the German bank’s analysts said: “With interest rate exposure through its pension deficit and with 83% of revenue in the UK, BT is one of the FTSE 100 companies more exposed to Brexit.”
Adding: ”As such, it was unsurprising that its share price fell by 13% on 24 June 2016, in the bottom quartile of the FTSE 100.”
But they continued: “We expect the coming months to be noisy in terms of newsflow, before an eventual deal is reached.”
And the analysts concluded: “If our base case of a semi-soft Brexit is achieved, this removal of ‘fat tail’ risks should be a positive.”