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18 Oct, 2021 14:06

Deutsche Bank lowers target price on BT

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BTSharecast photo / Josh White

Analysts at Deutsche Bank lowered their target price on telecommunications giant BT from 140.0p to 125.0p on Monday, stating that risks were "inflating not abating".

Deutsche Bank said its downgrade of BT to 'sell' in June "could have been better timed" as the shares almost immediately ratcheted to above 200.0p on news that Patrick Drahi had acquired a 12% voting stake.

However, the analysts stated that BT shares had since fallen to "within a whisker" of its then target price of 140.0p.

"Our concern was infrastructure competition which could see Openreach broadband lines fall by 4-6.0m in a base to worse-case overbuild scenario," said DB.

"Including the risk to retail (business-to-business and business-to-consumer), we estimated that alt-network build (including from Virgin Media O2) could take group EBITDA down by £1.0-1.6bn, offsetting any boost from circa £1.0bn capex reduction when BT's 25.0m FTTP project comes to an end by Dec 2026."


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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.