BT: Jefferies upgrades to 'buy' - shares rise

(CercleFinance.com) - Jefferies on Wednesday said it has upgraded its rating on BT from "hold" to "buy," citing the British broadband and mobile provider's "reordered priorities.
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Jefferies said a new CEO, raising capex to accommodate new FTTP ambition and trimming dividend per share to flat should be sufficient reasons to create a "fairer bet."

With consensus risk reduced and consumer pressure understood, BT's profile is more appealing, the US broker said.

Jefferies has also raised its target price for the share to 245 pence, compared to 215 pence previously.

The broker downgraded the stock in 2016, given the company's deteriorating relations with Britain's regulator Ofcom as BT prioritised dividends over fibre.

In mid-afternoon trading, BT shares were up 2.7% at 214.3 pence in a firm London market (+0.8%).

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