Berenberg reinstates BT Group stock with Buy rating on fiber build

Published 26/06/2025, 12:46
Berenberg reinstates BT Group stock with Buy rating on fiber build

Investing.com - Berenberg reinstated coverage on BT Group Plc. (LON:BT/A) (NYSE:BT) with a Buy rating and a price target of GBP2.40, representing 25% upside potential.

The research firm cited BT’s approaching completion of its fiber network build, which is scheduled to conclude in December 2026, as a key factor in the positive outlook.

Berenberg noted that if BT can navigate the next 18 months "relatively unscathed," the company should benefit from a significant reduction in capital expenditure once the fiber build is complete.

This capex reduction could result in cash flow increasing by at least GBP1 billion on an annualized basis, with additional operating expense savings expected on top of that figure.

The firm suggested that as the fiber build concludes, investor focus will likely shift toward "the potential for increased shareholder returns and deleveraging" for the British telecommunications company.

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