Bt Share Discussion Threads

[nige co] 16/2/2022 08:36

BT is underappreciated, says Berenberg

The inflationary tailwinds BT (BT.A) is enjoying are underappreciated by the market, says Berenberg.

Analyst Carl Murdock-Smith retained his ‘buy’ recommendation but increased the target price from 200p to 225p on the stock, which closed up 2.7% at 198p on Tuesday,

He said two-thirds of the telecoms giant’s revenue is inflation-linked and ‘combined with ongoing cost transformation and the growing benefits of its investment in fibre, we believe this positions BT to grow revenue, EBITDA, earnings per share, and normalised free cashflow in 2022/23’.

Murdock-Smith said the next two quarters should ‘strengthen investor faith in BT’s investment case by demonstrating mid-single digit EBITDA growth and the top line turning to c.2% growth in the first quarter’.

He admitted the stock was ‘expensive on cashflow’ but he expects the focus to shift to its price-to-earnings eatio as ‘evidence builds of capex driving growth’.

‘As BT turns to growth on the back of its higher investment, we believe more attention will be given to metrics that smooth out investment, like price/earnings, on which BT trades at 10x, [versus] telecoms incumbents [at] 18x.’

[grupo guitarlumber] 15/2/2022 17:06

BT is set to sign a 30 million-pound ($40.6 million) deal with startup Distributed to accelerate its modernization and transformation, The Times of London reports.

--The U.K. telecoms group will pay GBP10 million upfront for a minority stake, and the agreement will allow BT access to a wider pool of skilled technology professionals, helping it to manage a skills shortage, according to the Times.



Full story: [...]



Write to Kyle Morris at [e-mail]



(END) Dow Jones Newswires

February 15, 2022 11:05 ET (16:05 GMT)

[grupo guitarlumber] 15/2/2022 17:02

vodman1

15 Feb '22 - 15:46 - 1553 of 1553
0 0 0

As investors cool on big tech, they are warming to some faded stars of the dot-com era: telecommunications companies such as London-listed Vodafone. VOD 1.92% The bet has legs, particularly if European politicians decide that 5G networks are a higher priority than discount phone packages.

Telecommunications stocks have been among the rare gainers this year. The global sector has risen 3%, against a 6% decline in the wider MSCI World Index. Rising rates mechanically improve the appeal of dividend-paying companies relative to those that promise growth, but there are specific factors at play too, particularly in Europe. Vodafone is up 20% on news of investor activism and potential deals.

One hope is that the company, which used to own 45% of Verizon Communications and still has direct operations in 21 countries, might be able to merge some of its European units with local peers. Such deals would follow the example of the tie-up between T-Mobile and Sprint, which reduced the number of U.S. mobile operators from four to three.

The cost synergies latent in so-called “four-to-three” mergers could be a game changer for Europe’s entire telecommunications sector. For years the region’s network providers have been squeezed between the massive investments required to keep up with mushrooming data traffic and their inability to charge consumers more for better connectivity.


Just as in the U.S., though, such deals would be politically sensitive because of the possibility that operators would be freer to raise prices amid lower competition. A previous wave of merger hopes and share-price gains in 2014 and 2015 fizzled after antitrust regulators signaled staunch opposition.

A number of companies seem to think that this time is different. Last week, French telecommunications company Iliad gave the first official confirmation of a much-discussed potential deal between its Italian unit and that of Vodafone, which had rejected an €11.25 billion, equivalent to $12.72 billion, cash bid, Iliad noted.

Also last week, Spanish business newspaper Expansión reported talks between the Spanish unit of French giant Orange and its local rival MasMovil—a company previously linked to talks with Vodafone.

Antitrust regulation has become even more stringent since 2015, yet the first part of the pandemic also underlined the strategic importance of digital infrastructure. On a call with analysts this month, Vodafone Chief Executive Nick Read said the Covid-19 lockdowns “opened up a new stream of discussion” with governments, including about improving the sector’s low returns to attract investment.

The case for buying stocks such as Vodafone and Orange doesn’t rely wholly on contentious consumer-facing mergers.


A parallel effort to improve returns and valuations involves spinning tower and fiber-broadband assets off into separate companies that can be pitched to investors as high-value infrastructure. Last year, Vodafone held an initial public offering for its tower business, Vantage Towers, and could now merge it with equivalents at Orange or Germany’s Deutsche Telekom. Such transactions might achieve some of the benefits of broader tie-ups that prove too politically challenging.

However the deal game plays out, Vodafone now has Europe’s largest activist fund manager, Cevian Capital, on its back. Although it hasn’t publicly commented on its stake, Cevian typically calls for companies to slim down by selling noncore businesses. Vodafone’s 81% stake in Vantage, which even after this year’s market switcheroo trades at a far higher multiple of profits than its owner, seems an obvious place to start.

One way or another, European telecommunications companies are starting to look less like a value trap and more like a genuine bargain.

[rathkum] 15/2/2022 14:53

BT to benefit from accelerating inflation - Berenberg

bank Berenberg affirmed its 'buy' recommendation for BT on Tuesday, explaining the market has underestimated how the telecommunications company

[cyan] 15/2/2022 13:43

225p , that's reasonable. I see this in the range 210-230 in the relatively short term.

[nige co] 15/2/2022 12:10

Berenberg hikes target price on BT

"Analysts at Berenberg hiked their target price on telecommunications giant BT Group from 200.0p to 225.0p on Tuesday, stating certain inflationary tailwinds were currently underappreciated."

Link won't load. To read the full article Google.....Berenberg hikes target price on BT

[florenceorbis] 15/2/2022 08:33

Tuesday 15 February 2022 8:14 am

BT pumps £30m into tech freelancing start up

By: Charlie Conchie

Telecoms giant BT has pumped £30m into a tech freelancing start up which helps business transform their digital systems, as it looks to ramp up its own modernisation efforts.

BT bosses revealed they had taken a stake in Distributed, which provides firms with freelancers with expertise in AI and cloud computing, as the firm looks to tap into high growth tech startups via a new division it set up to back fast-growth tech firms.

Distributed, led by former musician Callum Adamson, said the backing from BT was a “huge milestone” for the firm.

Mark Murphy, a technology executive at BT will also take a board seat at Distributed, while BT’s start up growth director will join as an observer.

The investment from BT marks the latest step in the firm’s efforts to ramp up modernisation efforts after hiring tech executive Harmeen Mehta as chief digital and innovation officer last year.

Mehta said the investment in Distributed would help “accelerate the digital revolution within BT and help to make it and the UK a key hub for the digital innovation economy.”

BT has been going through a period of transition under chief executive Philip Jansen, who has outlined plans to cut 13,000 jobs and slash 270 of BT’s 300 UK offices.

Bosses have come under pressure to deliver growth after shareholder Patrick Drahi increased his stake from 12 per cent to 18 per cent, sparking speculation that he was preparing to launch a takeover bid.

Jansen has been looking to strip layers of bureaucracy and create a more agile workforce since joining the firm three years ago from payments firm Worldpay.



City A.M.

[diku] 12/2/2022 09:24

156p Jan 2024???...in other words its a casino and nobody knows what the share price is going to be...pure speculation and hope for the best...






Looking at it from a longer-term perspective, an algorithm-based BT share price forecast for 2021-2025 by Wallet Investor saw the price this time next year being £1.72, then declining steadily until reaching £1.56 per share by January 2024 and £1.89 in January 2027.

When looking for BT share price predictions, bear in mind that analysts’ forecasts can be wrong. Analysts’ projections are based on making a fundamental and technical study of the company’s performance. Past performance never guarantees future results, however. Do your own research and always remember your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you feel about losing money. Never invest more than you can afford to lose.

[grupo guitarlumber] 12/2/2022 09:19

(MT Newswires) -- Morgan Stanley on Friday raised the price target of BT Group (BT.A.L) to 2.50 pounds sterling ($3.40) from 2.20 pounds and maintained its overweight rating.

[grupo guitarlumber] 12/2/2022 09:18

Next strong resistenced seems to be 207p

[grupo guitarlumber] 12/2/2022 09:13

I think the BT share price could soar if this happens

Andrew Woods | Friday, 11th February, 2022

Key points

There are two possible deals concerning the BT Sport brand

Altice owner Patrick Drahi has increased his stake from 12.1% to 18%, sparking takeover rumours

Cash flow increased 6% in recent results

A telecommunications giant, BT Group (LSE:BT.A) is an instantly recognisable British firm.

Boasting brands like BT Sport and EE, the company is a FTSE 100 stalwart.

With the potential sale of BT Sport, takeover rumours and some interesting financial results, I think the BT share price could be about to soar.

Should I now be adding this business to my own portfolio? Let’s take a closer look.


Sales, takeover rumours, and the BT share price

Just this month, the firm announced it was in the final stages of selling its Premier League rights to US streaming service DAZN.

This deal, thought to be worth $800m, would be a welcome cash injection for BT, which has a not insignificant debt pile of around £18.2bn.




This transaction is complicated, however, as it has reportedly stalled.

This is primarily because of the possibility of a joint sports venture with Discovery Communications.

This would be an equal venture, with BT adding Eurosport UK to its portfolio of channels.

While this may complicate the DAZN deal, it may also be lucrative and its conclusion may cause the BT share price to soar.

Rumours have also been swirling since December 2021 about a possible takeover of BT.

The talk increased after Patrick Drahi, the owner of European telecommunications giant Altice, increased his stake in BT from 12.1% to 18%.

This purchase attracted a lot of attention. Many are wondering if Drahi is steadily increasing his stake to avoid the costs associated with a bid offer.

In any case, we will not uncover his true intentions until the summer, due to UK takeover regulations.

While a successful takeover would likely see the BT share price take off, we will need to wait a little longer to find out.
Mixed financial results

In the recent financial report for the nine months to 31 December 2021, BT reported a mixed bag of results.

During this period, profit fell by around 3% and revenue dropped by 2%. The firm stated that this was down to “Covid-19 and supply chain problems”. For me, these appear to be short-term issues that will subside with time.

On the flip side, cash flow increased markedly by 6%, from £830m to £878m. This means that the company has the luxury of cash with which to expand or strengthen its balance sheet.

This should have a very positive impact on the BT share price.

The exciting prospect of either a sale of the BT Sport brand or a joint venture might indeed the send the BT share price flying.

With more information expected soon, I will be buying shares now.

While the takeover rumours are interesting, and would positively impact the share price, I am more focused on the cash flow improvements that place the firm in a stronger financial position.





Andrew Woods

The Motley Fool UK

[the charmer] 11/2/2022 14:52

Will there be an RNS awaiting on Monday?

[the charmer] 11/2/2022 14:48

Seller looks to be out now. First stop 2.05

[clive205] 11/2/2022 08:15

£2 paid ............

Should move up a few pence quite quickly.

[clive205] 11/2/2022 08:09

BT and Vodafone expected to speed up consolidation under activist pressure:

[maywillow] 11/2/2022 08:04

CAPITAL.COM



UK telecoms giant BT continues its strong march into 2022 despite results that temporarily disppointed the market. As of today (9 February) its shares have risen 18% this calendar year so far to £1.975

In its third quarter results BT posted revenues of £15.68bn down 2% on the same period last year and pre-tax profits of £1.54bn which were down 3% year on year. It blamed delayed Covid-19 recovery and supply chain issues for the downturn.

That decline in both revenue and profits is what disappointed the market but on consideration it took heart from the growth in both its full fibre and 5G roll out programmes - both viewed as critical to BT's future. In the days since the results BT has put 8% on its share price.

The company also announced significant moves in how it intends to strengthen its play in the content and TV business. It had two announcements.



It has agreed in principle with that Sky "will provide our customers more choice and more flexibility for the next decade". It has also opened discussions with the Discovery channel possibly leading to a new joint venture between BT Sport and Eurosport UK.

Looking at it from a longer-term perspective, an algorithm-based BT share price forecast for 2021-2025 by Wallet Investor saw the price this time next year being £1.72, then declining steadily until reaching £1.56 per share by January 2024 and £1.89 in January 2027.

When looking for BT share price predictions, bear in mind that analysts’ forecasts can be wrong. Analysts’ projections are based on making a fundamental and technical study of the company’s performance. Past performance never guarantees future results, however. Do your own research and always remember your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you feel about losing money. Never invest more than you can afford to lose.

[the charmer] 10/2/2022 14:51

So who has sold down, could it be good old DT?

[the charmer] 10/2/2022 14:41

Has Draghi increased his stake yet again? Going past £2 by the looks of things.

[grupo guitarlumber] 10/2/2022 05:28

Openreach adds 500 jobs in broadband boost
Terry Murden, Editor | February 10, 2022
Female engineers at work in Lanark

Openreach is creating 500 more Scottish jobs this year – of which about 390 will be apprenticeships – as it continues to invest into its UK broadband network, people and training.

The new recruits will be based across Scotland – including around 65 posts each in Fife and across Ayrshire, 55 each in Edinburgh and Glasgow, 40 each for Angus and Dundee and Highlands and Islands; and 30 each for Stirling and Scottish Borders.

The mammoth build is on track to reach 25 million UK homes and businesses by December 2026 and has already reached more than half a million properties in Scotland.

The hiring spree – 4,000 jobs are being created across the UK – is part of the largest recruitment drive in Openreach’s history.

With a workforce of 3,700 across Scotland, Openreach already employs the nation’s largest team of telecoms engineers and professionals.

Last year, 17% of the company’s intake of trainee engineers in Scotland was female, more than triple the previous year. The boost was thanks partly to employing language experts to transform its job adverts and descriptions, making them gender neutral.

Clive Selley, CEO, Openreach, said: “I’m proud that we’re continuing to invest heavily in our people, having hired and trained more than 8,000 new engineers over the last two years, over 800 of them across Scotland.

“We’ve been building state of the art training schools where we can teach people the skills and techniques they need for long, exciting and rewarding careers in engineering.

“We want to reflect the communities we serve and give opportunities to people from all backgrounds, so I’m encouraged that we’ve recruited more women and minority groups this year compared to last year, but we’ve got much more to do in an industry that hasn’t been very diverse historically.”

[netcurtains] 09/2/2022 18:20

If Vodafones subsidaries are worth up to £12b (Italy) then surely BTs bits and bobs are worth a few bob too?

[waldron] 09/2/2022 17:57

Proactive

15:22 Wed 09 Feb 2022


BT Group PLC (LSE:BT.A) is to outsource 300 jobs to GXO Logistics Inc as part of a shake-up of its supply chain.

The telecoms group will hand over the running of its core warehouse and transport capabilities, with 300 staff transferring to GXO under a transfer of undertakings or “TUPE” agreement.


“Our partnership with GXO brings us to an important milestone in our transformation programme as we simplify BT,” said Cyril Pourrat, Chief Procurement and Supply Chain Officer.

BT Group announced it was restructuring its supply chain and procurement operations in 2021 to modernise and bring down costs.

In November, the FTSE 100 group said it had reached its £1bn cost savings target 18 months early and brought forward its target of £2bn of savings to the fiscal year 2024.

[waldron] 09/2/2022 17:57

Proactive

15:22 Wed 09 Feb 2022


BT Group PLC (LSE:BT.A) is to outsource 300 jobs to GXO Logistics Inc as part of a shake-up of its supply chain.

The telecoms group will hand over the running of its core warehouse and transport capabilities, with 300 staff transferring to GXO under a transfer of undertakings or “TUPE” agreement.


“Our partnership with GXO brings us to an important milestone in our transformation programme as we simplify BT,” said Cyril Pourrat, Chief Procurement and Supply Chain Officer.

BT Group announced it was restructuring its supply chain and procurement operations in 2021 to modernise and bring down costs.

In November, the FTSE 100 group said it had reached its £1bn cost savings target 18 months early and brought forward its target of £2bn of savings to the fiscal year 2024.

[saltaire111] 09/2/2022 15:42

why Does ADVFN double-post on iPad? Annoying!

[saltaire111] 09/2/2022 15:42

If it gets through two quid and stays there, it should be fairly plain sailing to £2.50 ish.