BT: Jefferies still a buyer, trims target price

(CercleFinance.com) - Jefferies maintains its "buy" rating on BT shares, although has reduced its target price for them from 250 pence to 190 pence, saying that it sees favourable tailwinds for the British telecom operator in 2023, "but not in all simplicity".


"Price increases should powerfully reinforce rev growth over the next 12 mths, whilst wage deal improves visibility on costs," the broker says, which expects EBITDA that is slightly above the consensus for FY2024-25.

However, Jefferies says that it is aware of some threats in the BT case, for example highlighing "Upside risk to pension deficit given £13bn value attributed to unquoted assets".


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