BT Group PLC (LSE:BT.A) had the bears in retreat for a second day running as brokers were impressed by the tone of management with the half-year numbers.
Deutsche Bank said it had been a confident call with analysts by management yesterday on the results, adding CEO Philip Jansen and his team had come out "punchy".
Management had "high confidence" in targets, regardless of any inflation scenario as BT cuts (gross) costs and puts through inflation-plus prices across the majority of its customers from the 2023 financial year.
“Even Enterprise and Global are expected to recover as ICT projects return post-pandemic and management are confident that they will not lose share.”
JP Morgan said there had been a flurry of positives in the numbers that should enable “BT to resume its journey towards fresh all-time highs”.
The US bank noted that Liberty’s third results call yesterday also cast doubt on whether it will be able to expand the rival Virgin Media network to 22mln homes or even win significant wholesale customers, all of which should be good news for BT.
Strategic conversations around the BT sports arm are also ongoing, noted the broker.
Buy with a 255p target is JPM’s view, though DB is still a seller with a target of 125p against shares up 2.6% today to 162p.