BT Share News (BT.A)

Deutsche Bank said that Land Securities' £656m purchase of a 30% stake in shopping centre Bluewater will likely lift valuations of shopping centres across the UK.Land Securities said that overall net initial yield after the expiry of rent-free periods is 4.1%. However, Deutsche Bank estimated that before allowing for the expiry of rent-free period, the initial yield was "a very low 3.75%, compared to the equivalent figure of 4.2% for Intu's Trafford Centre, Manchester, at the end of 2013, a centre of comparable size and quality".The bank roughly estimated that the price the group paid implies a capital value appreciation - for equivalent assets of other shopping centres - of about 11%. "Sceptics will argue that the valuation evidence created by this transaction can only be applied to the very best shopping centres in the UK, including Intu's Trafford Centre, Manchester and Westfield's two London shopping centres (held in their balance sheet at 5.5% yields at end-2013). "However, we expect this evidence to encourage valuers to tighten yields at least to some extent on most good quality UK shopping centres and hence benefit net asset value growth for Intu Properties (UK shopping centres: 98%), Hammerson (37%), Land Securities (26% existing exposure) and British Land (16%)."BT Group's shares have the "potential to re-rate further", according to Credit Suisse, which added the stock to its 'Europe Focus List'.The bank repeated its 'outperform' recommendation and 440p target price for the shares, saying it bullish outlook for the company remains intact after the recent Ofcom ruling.Ofcom said that BT can continue to set its wholesale fibre price, which means it can sustain a price premium for its fibre-to-the-cabinet (FTTC) product BT Infinity, while demand continues to rise.Credit Suisse said the next auction for Premier League rights "remains a risk" given that BT is likely to pay "substantially more [than another bidder] to keeps its existing two packs".However, it said that the recent Ofcom fibre ruling means that BT should be able to pass higher content costs on to customers. The bank also believes that BT should be able to cut operating expenditure by around £100-150m per annum, which will be another way of offsetting the extra costs.On a separate note, Credit Suisse said that while the next pension review may confirm a higher deficit of £5-6bn, this may be the "peak".BT was trading 0.7% higher at 383.82p by 10:07 on Thursday.In spite of the negative reaction to DS Smith's annual results on Thursday, Investec has recommended investors 'buy' shares of the consumer goods packaging group after its report "tick[ed] all the boxes"."We see these full-year results as solidly in line with our and consensus expectations in what remain difficult end markets," the broker said. Pre-tax profit surged to £167m in the 12 months to April 30th from £82m a year earlier as revenue increased 10% to £4.03m. Earnings per share climbed 25% to 21.4p.Organic corrugated packaging volumes grew 2.2%, ahead of the corrugated packaging market."Corrugated box volumes were broadly stable during the second half, ahead of target and show continued market share gains," Investec said.The broker has placed its 390p target price for the shares under review.Despite the positive comments, the stock was down nearly 5% at 290.2p by 10:25 on Thursday.AB