Alerts in the last 24 hours

No Personalised Alerts!

To see personalised alerts you need to be logged in.

Log In

Is BT Group’s share price set to soar?

In the last year the BT Group (LON:BT.A) (BT.A.L) share price has declined by just 1%. However, during that time it has been highly volatile, with it rising to a high of 264p and falling to a low of 203p. That’s understandable in my view, since the stock is towards the beginning of a period of major strategic change which includes having a new CEO. It faces a challenging operating environment, while recent updates have suggested that even a modest rise in sales or profitability may be tough in the near term. As a result, its EPS growth for this year and next year is expected to be negative, thereby making it five years of falling profitability should its forecasts be met. Therefore, I do not think the BT share price is set to soar in the near term. With a dividend yield in excess of 6% and a single-digit P/E ratio, I believe it could offer a margin of safety at the moment. But without a clear catalyst to boost investor sentiment, I am of the view that investor sentiment may remain subdued over future months.

First found on: investomania.co.uk