BT Group PLC's (LON:BT.A) target price was trimmed by both Jefferies and Credit Suisse based on a bleak set of economic scenarios.
For the telecoms giant, economic activity progressively recovering in the second half is upper-end guidance, not its base case.
READ: BT upgraded by Berenberg after shares fall to 11-year low
The lower-end one envisages renewed lockdown and abrupt withdrawal of government support, which analysts said is much more pessimistic than BT’s peers.
Jefferies, which cut its target to 165p from 220p, expects underlying earnings (EBITDA) to decline by 7% in the current financial year, rising to 2% in 2022.
Analysts said the current share price reflects material undervaluation of the Openreach infrastructure asset, but it is set to benefit from pension scheme investment with a reduced deficit, longer recovery plan, reduced upfront cash funding and accelerated tax benefit.
Over at Credit Suisse, the analysts lowered their target price to 180p from 190p.
Shares dipped 1% to 108.8p on Thursday morning.