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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.

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