BT: UBS downgrades to 'sell'

(CercleFinance.com) - UBS has downgraded BT shares to "sell" from "neutral" on Friday, seeing a number of hurdles in the coming months and suggesting that risks are "underestimated".


UBS, which also cut its target price for the stock from 116 pence to 111 pence, said risks to Openreach, the British telecom operator's network infrastructure arm, may be "overlooked".

The broker also said that its pension deficit could limit M&A activity and cap the dividend to four pence, while there could be a high level of bidding tension in the 5G spectrum auction.

BT shares were trading down 0.8% in London on Friday morning.

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