BT Group PLC (LSE: BT.A)

BT Group PLC (LSE: BT.A) is an FTSE 100 index listed fixed and mobile telecommunications service provider. It provides managed telecommunications, security and network and IT infrastructure services to customers across 180 countries. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Rationale – Sell at GBX 135.47

• Profit Booking: BT Group’s stock price has breached the R1 level suggested in the previous report published on 16 February 2024. Considering the market conditions and the price action, it is prudent to exit the stock and book profit.
• Decline in Basic Earnings per Share: The Company’s basic earnings per share has declined 55% YoY during FY24.
• Macroeconomic Risk: The market sentiments can remain weak in the short-term due to the subdued consumer disposable income, geopolitical tensions, and political risks.

Share Price Chart  

Conclusion

Based on the notional gains, decline in basic earnings per share during FY23, and price action stance, a "SELL" recommendation on BT Group PLC has been given at the current market price of GBX 135.47 (as of 17 May 2024 at 08:25 AM GMT+1).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 17 May 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.