RE: UBS26 Apr 2024 12:08
Sell BT, says investment bank amid Openreach concerns
Published: 12:30 25 Apr 2024 BST
BT Group PLC -
UBS has restated its 'sell' recommendation for shares in BT Group PLC citing concerns over its subsidiary Openreach, which manages the United Kingdom's digital network infrastructure.
The investment bank's latest analysis assesses the challenges the business faces in maintaining its dominant position in the domestic broadband market - and thinks could lose as many as one million lines in the financial year 2025.
The report goes on to highlight the increasing competition from alternative network providers, which are rapidly expanding their infrastructure.
Further exacerbating the situation is the potential for stricter regulatory oversight and moves to promote competition, that could hit profit margins.
UBS's price target for BT shares is 100p versus the current price of 105.25p (unchanged).