Broker snap: Credit Suisse ups target for BT, keeps at 'outperform

Credit Suisse has raised its target price for telecommunications giant BT Group from 300p to 350p and maintained its 'outperform' rating on the stock.The broker said that while BT can continue to reduce costs for the next seven years until 2020, the near-term potential for cost cutting is now more fully reflected in the company guidance (to the year ending March 2016). It is also reflected for the first time in the share price since the broker upgraded the stock to 'outperform' back in September 2009."Upside from here is more dependent on top line trends improving," said analyst Paul Sidney.He highlighted "three key reasons" to expect upside from the stock, including an accelerated take-up of broadband."We expect UK household demand for high-speed broadband to accelerate driven by rising internet devices per home and increasing video usage per device," he said, adding that wholesale fibre customers should also pick up.Other reasons to be positive on the stock include the company's TV strategy which is likely to slow line loss, as well as an expected revenue rebound from Global Services division in an economic recovery.The stock was up 2.16% at 311.6p by 10:55.