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https://www.google.com/amp/s/www.proactiveinvestors.co.uk/companies/amp/news/968199
Do far not seen any downgrades since the earning call which is a great sign.
Credit Suisse raised its price target for shares in BT Group PLC (LSE:BT.A), which it rates ‘outperform’.
The move follows a presentation by the heads of its Openreach infrastructure business and a management update.
The Swiss investment bank also raised its 2024 free cash flow forecast by 10%.
It said it is 2% ahead of 2024 consensus forecasts for underlying earnings (EBITDA), but it also noted that the consensus for 2023 is around £100mln below the company’s own guidance “in which management has expressed high confidence”.
I think we shouldnt see PE takeover as negative for BT. They create a more efficient market and in the end we all benefit from probably a faster roll out of fibre across the country due to their massive cash pile and maybe even cheaper internet.
Not all PE is about cost cutting but BT does have alot of fat to trim. Alternatively the government can always prop BT up by giving them a majority of project gigabyte funding and boost the SP to prevent any lowball offers.
That's exactly the reason big corporations will only go for the best. BT while not perfect it has the best reached and signal and MNC will always pay a premium for reliability.
EE is probably the best in mobile as well in coverage and WiFi strength, past the toilet seat test for office workers whereas can't say the same for others.
2 products that is best in class, can we sell BT sport soon so it doesn't get in the way!
Have a feeling they will end up in the green even though FTSE is down.
I don't understand why UBS is so pessimistic on BT given the amount of positive news and potential catalyst coming.
Their latest article harps on pension deficit (quoting an outdated amount) and all the negatives of a bid with nothing good to say. Clearly an agenda for whatver reason. Don't trust them to be neutral.
10 days before drahi can top up again, if he is indeed the buy of the option then it will set the floor on at least £1.8 or 10% upside and he can clean up anything under that.
Easy hold to wait and see.
A month ago DT mentioned about their 12% is on the option list. Almost certain they are a seller now (for the right price).
Reliance sounds more like they that they are looking for a large controlling stake rather than the entire company, either way it's positive news.
If a bid does happen my money is still on hedged funds rather than reliance / drahi to win out as they are well capitalised and experts at asset stripping and not to mentioned BT has one of the highest cost base to domestic margins than any other major European telecom providers so alot of opportunities to reduce cost (to be fair that's what they are doing right now).
BT current enterprise value is about £38b (market cap + debt + pension deficit) I think but I have strong believe given how the market is performing the pension deficit in a year time will not be a big deal. So if we ignore that then ev is about £33b (market cap + debt). I would hope once pension deficit is fully closed they can offload this off to a hedged fund.
Openreach is suggested to be worth £40b after built out so I think £26b Barclay's had is probably a more realistic representation, but maybe worth £30b at end of the tax year after further capex spending.
So if we forward look into 1 years from now openreach alone is probably worth the entire ev of BT at the current share price.
Yep, who cares about short term volatility when there is a high likelihood a bid could come within the next couple years. I know where my sipp / isa will go to next April assuming there isn't a bid by then.
So many positive short term catalyst coming.
https://www.bloomberg.com/news/articles/2021-11-21/kkr-offers-to-buy-all-of-telecom-italia-for-eu0-505-a-share
Well a 46% premium. Telecom Infrastructure plays from PE is going to happen more and more imo. Drahi will no doubt be topping up when he is allow to do so,.
Really positive on the pension deficit reduction. As the annual report is retrospective and since then the market has gain new highs I would expect reduction to go even further this time next year.
Lots of reason to be holding and 1.70-1.80 next week is achievable.
Drahi's is currently in an eviable position where its a win-win for him. If SP is too cheap he'll make a bid, but if SP is high he'll enjoy the benefit of his 12% holding.
I expect further brokerage re-rating in the coming days after the results. Takeover or not the SP should do well based on the operational results.
I think the Q2 webcast was one of the most positive ones I've seen BT do and there is further upside in project gigabyte which is unaccounted in their forecast in which openreach will probably going to win the lion share. Q3 results is probably going to be the catalyst, by then we should know more about dazn, drahi's intentions and recovery of enterprise (which I think will happen given covid reopening and the size of their order book).
JP Morgan said there had been a flurry of positives in the numbers that should enable “BT to resume its journey towards fresh all-time highs”.
The US bank noted that Liberty’s third results call yesterday also cast doubt on whether it will be able to expand the rival Virgin Media network to 22m homes or even win significant wholesale customers, all of which should be good news for BT.
Strategic conversations around the BT sports arm are also ongoing noted the broker.
Buy with a 255p target is JPM’s view though DB is still a seller with a target of 125p against shares up 2.6% today to 162p.
I think the Q2 webcast was one of the most positive ones I've seen BT do and there is further upside in project gigabyte which is unaccounted in their forecast in which openreach will probably going to win the lion share. Q3 results is probably going to be the catalyst, by then we should know more about dazn, drahi's intentions and recovery of enterprise (which I think will happen given covid reopening and the size of their order book).
JP Morgan said there had been a flurry of positives in the numbers that should enable “BT to resume its journey towards fresh all-time highs”.
The US bank noted that Liberty’s third results call yesterday also cast doubt on whether it will be able to expand the rival Virgin Media network to 22m homes or even win significant wholesale customers, all of which should be good news for BT.
Strategic conversations around the BT sports arm are also ongoing noted the broker.
Buy with a 255p target is JPM’s view though DB is still a seller with a target of 125p against shares up 2.6% today to 162p.
BT lower cost to build, high NPS and reach could potnetially make other competitors revalue if they want to compete imo.
https://www.ispreview.co.uk/index.php/2021/11/virgin-media-o2-adds-67000-more-premises-to-uk-fttp-cover.html
Virgin Media and O2 (VMO2) have today published their latest joint (merged) results for Q3 2021, which reveals that their full fibre (FTTP) network rollout reached another 67,000 UK premises in the quarter (down from 89K in Q2)
Elsewhere, Ofcom found that Virgin Media had attracted the most complaints for their fixed broadband, pay TV and phone services during Q1 2021 (here) and we reported that their HUB 3.0 router was still suffering from a long-running security issue that could be used to “silently unmask” the real IP addresses of VPN users (here).
We should add that VMO2 has previously spoken of an ambition to invest £10bn over the next 5 years to upgrade to 5G mobile and expand their FTTP broadband coverage to a further 7-8 million homes (e.g. rural or semi-rural areas). Sadly, today’s announcement doesn’t provide any update on that, but they are still “actively exploring further expansion opportunities to reach millions more premises, with discussions ongoing with strategic and financial partners.”
https://worldinsport.com/bt-sports-dazn-reach-deal/
Got into BT at £1 sadly still holding, but looking like sentiments are turning.