JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com -- BT Group Plc LON:BT), which has outperformed the broader telecom sector this year, has seen its stock rise 19% year-to-date, driven by factors like the Bharti Televentures acquisition, which overshadowed weaker performance metrics.
However, Deutsche Bank (ETR:DBKGn) has downgraded its rating on the stock to “sell” from “hold,”citing concerns about the company’s fundamentals.
Despite a defensive rally, driven in part by positive developments such as lower post-fiber capital expenditures and potential deals in its Global Services division, Deutsche Bank believes BT’s stock is now 20% above its target price of 140p, with limited room for further growth.
The brokerage flags persistent competitive pressures from alt-net rivals, as well as a continued decline in Openreach’s performance.
While BT’s defensive positioning seemed advantageous amid economic uncertainty, Deutsche Bank analysts are concerned that the company’s stock is unlikely to sustain its recent performance.
The ongoing market competition and broader macroeconomic challenges, including weakening bond market trends, create material headwinds for the company.