Brokers label BT a ‘buy’ as the group continues to beat expectations

10th February 2014

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Brokers are tipping BT Group as a ‘buy’ as the telecommunications firm continues to demonstrate it can grow and still beat City forecasts writes Philip Scott.

The group’s third quarter results, published in January, were very positive for shareholders as revenues outpaced analyst expectations.

The results spurred BT on to raise its earnings guidance for the year to the top end of its range and it could be in sight of achieving its gross revenue target.

Shares in the UK’s main fixed line telecoms group have risen robustly of late, jumping by 47% over the past year and by almost 20% in last six months alone.

But despite the rise, the market sentiment is still calling the stock a ‘buy’ according to Digital Look.

Sheridan Admans, investment research manager at The Share Centre is also bullish on the outlook for the firm as he believes that the company is demonstrating it can expand and invest for future growth without being a headwind to cash flow.

He says: “The company is starting to take market share from other subscription providers as the roll out of its new high quality sports channels is attracting new broadband subscribers and attracted 2.5m customers.

“Investors will be pleased to hear BT expects to grow dividends by 10% – 15% per annum over the next three years and currently offers an attractive yield. It has delivered on freeing up cash flow and cutting costs and expects a further £400m in cost savings is still to come.”

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