February 12, 2016 / 9:22 AM / 4 years ago

BUZZ-BT: worst telecom performer after UBS cautions on competition

** BT Group down c.0.6 pct, bottom of Stoxx 600 telecoms index as UBS says that risks from increasing competition have been underestimated

** UBS highlights longer-term risks from Virgin Media’s footprint expansion with Project Lightning

** Brokerage cuts to “sell” from “neutral”, keeps PT at 430p, but says if competition intensify sees downside to 305p

** 13 of 24 brokerages rate the stock “buy” or higher, 5 “hold” and 6 “sell” or lower; their median PT is 530p

** Up to Thursday’s close of 450.45p, stock had fallen c.5 pct YTD, massively outperforming the European telecoms sector, which has eroded c.14 pct in value

** Mobile could see a new entrant such as Iliad, depending on the remedies for Hutchison /O2 merger & potential Vodafone /Liberty Global marriage could hurt BT Wholesale revenues initially, UBS cautions

** A fifth of a full day’s volume traded through on BT in less than 1 hr (RM: esha.vaish.thomsonreuters.com@reuters.net)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below