Are BT shares a buy? Barclays seem to think so

Barclays analysts say the share price has the potential to reach £3.

· 1 min read
BT
BT

The folks over at Barclays believe the BT (LON: BT.A) (BT.A) share price has the potential to rise to 300p in the coming months.

The bank says this is its best-case valuation and believes this has been championed by the ‘improved visibility of returns at Openreach’ and the recent investment from Altice owner Patrick Drahi. The French telecommunications giant is securing a 12% stake in BT.

BT shares have had a good run and are up almost 50% year to date, compared to the 11% gains made by the FTSE 100 index over the same period.

What could halt the rise in BT share prices?

BT is facing a class-action lawsuit over claims it failed to compensate elderly customers who were overcharged for landlines for several years. The claim is due to the ‘poor value’ offered for its services before 2018 when BT cut line rental charges by £7 a month.

The ongoing case against two million BT landline-only customers could dampen investor mood should the telecom giant be forced to payout. If the lawsuit proves successful, customers could receive up to £500 per household.

In a statement, BT insists it will continue to ‘defend itself vigorously’ against the claim.

The BT share price at the time of writing is 195.00 GBX.


Not Investment Advice
Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.