- BT Group
- 23 March 2023 10:12:26
Source: Sharecast
Deutsche Bank said it was "leaning in" on BT, with the shares doing well year-to date, up 26% and roughly twice its peers, recouping much of its relative losses of 2022.
The German bank stated it upgraded BT to 'hold' on a better outlook for UK taxes which were proposed and then reversed, and said the stock became oversold. However, Deutsche said the group's share price was now in line with when it made the upgrade.
"We wondered whether BT would 'lean in' to a circa 14% price increase to consumers (10% to wholesalers) after a serendipitous (for BT) CPI out-turn, and it has," said Deutsche Bank.
"We have well publicised views as to the longer-term efficacy of such price action into a cost-of-living crisis and a massive alt-net build programme but BT's largest competitors are following suit on price rises (particularly on mobile) which should more than afray labour cost increases and sees our EBITDA expectations tick-up on stronger B2C and Openreach despite ongoing B2B weakness."
However, DB also said it was maintaining caution in a sector with greater value upside potential with lower risks elsewhere.
Reporting by Iain Gilbert at Sharecast.com
