BT Group PLC (LSE:BT.A) has emerged as one of the best-placed telcos from a screen by JP Morgan of European operators in the face of higher interest rates and rising inflation.
Concerns about the sector have focused on high debts and lack of pricing power, but JP Morgan says the group as a whole has performed well relatively this year.
The US bank said it screened the companies in the group against the current key macroeconomic shifts including soaring energy costs, wage inflation, consumer spending pressure, rising interest rates, FX moves and Russian exposure.
On that basis and purely from a macro-driven perspective BT, alongside Dutch group KPN and tower groups, looked best positioned, with the UK group scoring well on both its retail and wholesale pricing power though it fared worst on its wages outlook.
The US bank added it is now looking at a possible upgrade for BT at the tie of the first quarter trading update in July.
Vodafone came out as one of the worst positioned from its analysis, added JP Morgan and especially on cost pressures.
Shares in BT rose 2% to 190.1p while Vodafone was up 1% at 129.9p.