BT Group (360) | Hold (Not Rated) | Teed up for cash, not growth

Research evidence excerpt

BT Group (360) | Hold (Not Rated) | Teed up for cash, not growth

Release date: 24 June 2026BT Group Market data as of: 23 June 2026

United Kingdom | Telecom services Beta Profile: MCap: GBP19.4bn

Hold (Not Rated)Teed up for cash, not growth

Target Price: 213.0p (none)

What’s it all about? Current Price: 196.9p

BT is the UK’s incumbent telecom operator and, following recent portfolio Up/downside: 8.2%

reshaping, is now a cleaner, more UK-focused equity case, but not a revenue-growth Change in TP: none

story. The group should benefit from UK mobile market consolidation from four to Change in Adj. EPS: none 27E/none 28E

three operators, cost savings, and falling fibre capex, but the UK market remains

mature with limited structural growth, and the fixed broadband debate is shifting

from network build-out to monetisation. That makes execution, rather than market

growth, the key issue. BT must turn its extensive fibre footprint into customer

connections while facing strong competition from alternative fibre providers,

reduce its legacy exposure, and manage pension payments that still reduce the cash Kristoffer Carleskär

available to shareholders. We see a credible path to the FY 2027 normalised FCF Equity Research Analyst

target of GBP2bn, but less visibility on BT’s FY 2030 ambition of GBP3bn. With +44 207 621 5149

valuation reflecting the near-term recovery, we initiate with a Hold and 213p TP. Telecom services research team

Biographies at the end of this document

IMPORTANT. Please refer to the back of the report for important keplercheuvreux.com

information and disclosures. Thisand regulatedresearch isbythetheproductAutoritéofdesKeplerMarchésCheuvreux,Financierswhichin France.is authorised