Shares in BT Group gain 1.2 percent, outperforming a flat FTSE 100 index, supported by positive broker comment, with Galvan Research upping its stance to “buy”, and traders saying Morgan Stanley sees a “buying opportunity” in the stock.
“BT is clearly making strides forward, and with the shares now having fallen back some 15 percent from year highs, Galvan Research now changes it’s stance, and rates the shares as a buy,” says Andrew Gibson, Head of Research at Galvan in a note.
Gibson says that if BT’s recently reported 20 percent rise in headline first-quarter pretax profits is anything to go by, the push by BT for its new super-fast broadband network and it’s domination of broadband services is paying handsome dividends.
“With a bear trap rebound from back below 160 pence this week, a return for BT shares to the pre-August resistance zone above 190 pence looks highly likely while 160 pence support remains in place,” Gibson adds highlighting technical factors for the stock.
Traders say Morgan Stanley repeats its “overweight” stance on BT, with a 270 pence price target which offers 61 percent upside potential, as it expects EPS upgrades for the company.
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