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Forget the recent falls, BT Group is a ‘buy’, says Numis analyst

John Karidis is one of the few BT bulls in the Square Mile, and he reckons the telecom giant’s share are worth 325p
BT headquarters
BT’s shares nosedived last February amid the Italian accounting fiasco, and they’re yet to recover

The BT Group PLC (LON:BT.A) share price can’t catch a break at the moment.

The stock fell last Thursday after the embattled telecoms giant announced it was cutting 13,000 jobs as full-year revenues slipped slightly, and it is down again today (Monday).

READ: BT slashes 13,000 jobs as revenues fall

In mid-afternoon trading, BT’s shares are 2.3% in the red at 212.1p.

That shouldn’t be the case though, according to Numis analyst John Karidis, who is one of the few City number crunchers to have the FTSE 100 company as a ‘buy’, with a bullish price target of 325p to boot.

He points out that the trend in Europe is moving towards fixed-mobile convergence (FMC) services – where mobile phones and landlines act as one, with the same number, access to the same voicemail and simultaneous ringing.

“BT has by far the best arsenal (networks + distribution muscle + premium content) to grow value as a result of this trend,” wrote Karidis in a research note.

The analyst adds that BT’s Openreach division also has “good scope to grow value”, given its ability to develop its fibre offering cheaper and faster than its competitors.



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