BT share price: what’s the latest ahead of its Q3 results?
The telecoms provider will unveil its third quarter results next week, with investors hoping for a positive trading update capable of lifting its share price after tumbling more than 10% since the beginning of January.
BT Group will unveil its third quarter (Q3) results on Thursday 30 January, with investors hoping for a positive update capable of reversing the early losses the stock has sustained since starting the new year.
The telecoms provider has seen its share price tumble more than 10% since the beginning of January, with it trading at 175p a share as of 15:25 (GMT) on Wednesday.
Do you own BT shares? You can hedge your downside risk by trading CFDs.
BT sees margins squeezed amid tighter regulation
BT had a disappointing set of half-year results in October, with revenue sliding 2% to £11.5 billion and cash profits down 3% to £3.9 billion.
Its poor performance is due, in part, to the company seeing its margins squeezed by the regulator, Ofcom, which has demanded BT and its peers provide more high-speed internet connections at lower prices.
Openreach has great growth potential
Since being appointed as CEO back in February last year, Philip Jansen has looked to expand BT's Openreach business, which is responsible for rolling out the fibre cables that connect homes and businesses with super-fast internet.
Openreach has major growth potential and could deliver significant returns for BT in the coming years, with it tasked with providing the fibre infrastructure for the UK.
Thankfully, the telecoms provider will have a strong balance sheet capable of funding its growth ambitions after selling its Spanish operations in December to private equity firm Portobello Capital.
Deutsche Bank reiterates ‘sell’ rating in January
Analysts at Deutsche Bank remain pessimistic about BT, reiterating their ‘sell’ rating for the stock in January and leaving the price target unchanged at 169p a share.
Barclays Capital also reiterated their ‘underweight’ rating for the stock, with its analysts taking an even dimmer view than their German counterparts, issuing a 155p price target for BT.
Based on BT trading at 175p, Deutsche Bank and Barclays Capital believe the stock has a potential downside of -3.9% and -11.9% respectively.
Ready to start hedging? Open an account with IG today to get started.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
