BT share price: what’s the outlook after Deutsche Bank downgrades stock?

Analysts at the German lender recently slashed its target price for the telecom provider’s stock sending its share price lower.

BT Group saw its share price continue its descent on Monday after Deutsche Bank downgraded the company’s stock to a sell rating and slashed its target price recommendation.

The telecoms provider saw its share price tumble more than 2.5% on Monday, while the stock has lost over 7% of its value in the last five days of trading, with it trading at 193.76p a share as of 10:00 GMT on Tuesday.

Deutsche Bank slashed its target price for the stock from 217p to 175p on Monday. Analysts at the German lender justified their decision, saying that BT has become one of the ‘least attractive’ European telecoms providers due a lack of fibre deployment.

‘However, given our view that the European telcos sector is cheap which when combined with DB’s absolute (rather than relative) recommendation system, we had ranked the stock at Hold (after three years at Sell),’ Deutsche Bank said in a note to investors.

BT sells up in Spain to focus on UK market

According to recent report by the Telegraph, BT has begun looking for potential buyers for its Spanish business as its break-up and restructuring plans of its international division Global Services accelerate so it can turn its attention to the UK market and halt its share price falling any further.

The sale of BT España will run parallel to its ongoing sale of BT Ireland, with the British telecoms company hoping to attract interest from buyout firms and infrastructure investors rather than rivals in Spain like Orange, Vodafone, MásMóvil and Telefónica, according to the report.

BT rebrands itself to highlight its not just a telco

As part of a rebranding strategy aimed at highlighting that BT is far more than a telecoms company, it has hired London-based studio Red&White to help it show off its wide range of services that include cyber security software to digital skills programmes in schools.

After working on the project for more than three years, Red&White recently unveiled new branding for the British telco.

‘BT has been very British around shouting about its other services,’ Creative Director at Red&White Paul Franklin told Design Week. ‘We wanted to help the brand generate the confidence to tell these stories and change perceptions for the British public – it’s a tech brand, not just a telecoms brand.’

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

European Central Bank meeting

Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement on 24 October 2019.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.