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BT share price outperforms as Berenberg remains bullish on telco

Shares in BT Group (LON:BT.A) have advanced in London in today’s session as Berenberg reaffirmed its bullish stance on the former telecoms monopoly, while also hiking its valuation on the stock. Proactive Investors reports that the analysts have pointed to hopes for a ‘semi-soft’ Brexit.

As of 14:26 BST, BT’s share price had added 0.94 percent to 225.90p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.29 percent higher at 7,302.50 points. The group’s shares have lost just over a fifth of their value over the past year, as compared with a flat Footsie.

Berenberg upbeat on BT

Berenberg, which sees BT as a ‘buy,’ lifted its price target on the shares from 260p to 270p today. Proactive Investors quoted the analysts as saying in a note to clients that “with interest rate exposure through its pension deficit and with 83 percent of revenue in the UK, BT is one of the FTSE 100 companies more exposed to Brexit”.

”As such, it was unsurprising that its share price fell by 13 percent on 24 June 2016, in the bottom quartile of the FTSE 100,” the broker continued, adding that they expect “the coming months to be noisy in terms of newsflow, before an eventual deal is reached”.

Berenberg concluded that if its “base case of a semi-soft Brexit is achieved, this removal of ‘fat tail’ risks should be a positive”.

Other analysts on telco

Deutsche Bank meanwhile reaffirmed the blue-chip telco as a ‘hold’ this week, while earlier this month, Credit Suisse reiterated its ‘neutral’ rating on the stock. According to MarketBeat, the former telecoms monopoly currently has a consensus ‘hold’ rating and an average price target of 273.13p.

As of 14:49 BST, Friday, 14 September, BT Group plc share price is 225.50p.

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