BT Bonanza !26 Jun 2025 11:59
**** NEW BT PRICE TARGET 240p ****
Berenberg predicts transition from "defensive" to "defensive growth" for European telecom stocks as it initiates or re-initiates coverage on 20 companies from the sector
It sees sustainable free cash flow growth of 10% annually for the sector over 2025-2030, following prolonged period of lacklustre returns and underperformance vs the wider market
The broker expects that savings in capital expenditure and operating expenditure will boost earnings, with gross capex and opex expected to fall by 5 billion euros and 2.5 billion euros per year respectively over 2025-2030 as telecoms operators complete their fibre/5G network roll outs and shut down copper/PSTN
It prefers European telecoms stocks that create value for investors, deliver positive cash returns momentum and screen as "relatively cheap" vs the sector
The broker's top picks include BT Group , Deutsche Telekom , Cellnex , Telecom Italia , SES , Zegona and Proximus , which it expects to offer the most upside for investors