BT reported very strong results on Friday morning with free-cash-flow (FCF) now expected to increase to £2.6bn by fiscal year 2015 (circa +7.5 per cent ahead of consensus estimates) despite BT's heavy investment in BT Sport, analysts at Bank of America Merrill Lynch (BAML) highlighted. With fibre deployment still accelerating (and take-up likely to be helped by BT Sport), copper lines growing, a healthy order book in both GS and Wholesale, and mobile spectrum to differentiate its products, BT now looks to be within striking distance of its ambition to return to top line growth (in fiscal year 2015 by BAML estimates), Bank of America continued in a research note issued following the company´s release. "With the story reliant on cost cutting for the past few years, a return to growth (which is enabled by investment paid for by efficiency savings) could lead to a re-rating by the market in our view," they added.The broker raised its fiscal year 2015 earnings per share estimates for the company by 15%.As a result of all of the above they also upgraded shares of BT to 'buy', from 'neutral,' with a 325p price target, versus 275p before.To arrive at their new valuation, which is premised on improved cash-flow estimates, the analysts employed an explicit forecast period to 2020 based on their forecasts, a fade-period of 14 years and a terminal valuation thereafter, they explained to clients. AB