Investment bank Exane BNP Paribas has revised its evaluation of BT Group (BTGOF, Financial), lifting its rating from "Underperform" to "Neutral." The adjustment comes with a target price set at 140 GBp. This upgrade is part of a broader reassessment of the European telecom sector.
The firm attributed the change in outlook to several strategic developments within BT Group. Notably, the company is engaged in significant cost reduction initiatives and a decrease in capital expenditure (capex). These measures are expected to mitigate the risk to earnings over the coming year, providing a more stable financial backdrop for the telecom giant.
BT Group's efforts to streamline operations and focus on efficiency are seen as positive steps, potentially enhancing its financial performance and investor confidence. This rating change reflects a more optimistic view of the company's ability to navigate current market challenges.
