Brokers are calling BT shares a ‘buy’ as the telecommunications giant reports a 9% rise in first quarter pre-tax profits.
The firm also asserted that it was on track to meet its financial expectations for the year.
While revenues were flat during the three months to June, the total still marked an improvement on the 1.3% fall in the previous quarter.
However as the company gears up to take over the EE mobile network, BT revealed in its market update, that it has already signed up an impressive 100,000 customers to its new mobile service.
Despite a steep 22% share price rise over the past year the broker consensus towards the stock is a firm ‘buy’, with analysts at both Barclays Capital and Credit Suisse having recently issued upbeat notes on the FTSE 100 listed group.
Ian Forrest, investment research analyst at The Share Centre is also bullish and is tipping the firm as a ‘buy’ for medium risk investors. He noted that BT can now offer its super-fast fibre broadband to 80% of all UK households and the BT Sport TV offer will shortly be boosted by a new channel offering Champions League football.
He said: “These are good, solid figures from BT which show a continuation of the trends we saw in the previous quarter and point to the great potential for growth over the next few years with its new mobile and superfast broadband services. Subsequently, we recommend BT as a ‘buy’ as it continues to transform into the dominant telecoms provider in the UK, develops full value from the EE takeover and uses its strong cash flows to raise dividends well above inflation.”
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