- BT Group (LON:BT.A) slumped in 2H of 2022 but tentative buying emerged at 110p-100p
- As a utility company they are profitable but not highly valued by market
- Potentially watch to buy when BT share price drops to double-digit
It is widely assumed that utility stocks are ‘boring’ and ‘safe’. Nothing could be further from the truth. In the UK, utility stocks are neither boring nor safe, as the broadband company BT Group shows.
BT Group share price tends to move along with the wider market. Over the last six months, its share price dived from 190p to 115p, a drop of nearly 40 percent. This is due to:
- Market decline – especially in the autumn when investors panicked over a surge in energy prices and interest rates
- UK ‘Mini Budget’ debacle – which caused interest rate to spike and pension funds to dump holdings and lower asset values
- Government review of Patrick Drahi’s holdings – investors sold ahead in case he is forced to liquidate the large BT holdings
However, BT is oversold after such a massive decline, and a counter-trend rally is currently underway. Prices have rebounded from 115p to 128p. A further rally from here is not to be ruled out.
Years of underperforming the market has made the investment community cautious on BT Group. About half the analysts are saying ‘Hold’ or ‘Market Underperform’.
Among the 18 analysts compiled by one media (Financial Times) the median price target is around 175p, thus offering a 30-40% percent upside from BT’s current share price of 125p.
The current BT (LON:BT.A) share price is 123.65p which is a change of 0.75 or 0.61% from the last closing price of 123.65 with 11,961,535 shares traded giving BT a market capitalisation of £12,295,428,224. The most recent daily high has been 123.95 and daily low 122.1. The BT share price 52 week high has been 165.49 and the 52 week low 109.4. Based on the most recent BT share price opening of 123.65, the current BT EPS (earnings per share) are 0.18 and the PE (price earnings ratio) is 6.7.
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