Is the market’s love affair with BT Group (LON:BT.A) over? From the neutral observer’s perspective, it very much seems to be.
Since hitting a year-high in June on the back of billionaire investor Patrick Drahi’s stake building, followed by hopes it may be a prelude to M&A activity, the shares have given up much of the ground made in 2021.
Still, Barclays Capital hasn’t been deterred. In a circular previewing of the remainder of the year, it paints a reasonably bright picture.
“We conclude that infrastructure monetization opportunities remain, and that results in November could show a continued steady recovery, with a path to positive revenue growth on the horizon,” it said.
“As such we see risks skewed to the upside.”
Retaining its ‘overweight’ call on BT shares, it reckons they are worth 260p each. That target is more than 50% above the current 170p share price.
All eyes currently are on the direction of travel following the appointment of Adam Crozier as chairman.
The former head of the FA is credited with turning around Royal Mail, and it is hoped he will oversee a similar evolution at BT, which has been dogged with regulatory and pension concerns.