Shares of UK-based BT Group PLC (GB:BT.A) help investors balance their capital and dividend growth. BT shares have surged to almost 150p after dropping to a low of 100p in April 2024. Year-to-date, BT Group stock has gained 19.5%. Moving ahead, analysts predict around 25% growth in the share price. Additionally, the dividend yield of 5.48% beats the sector average, making it an attractive pick for income investors.
BT Group is a telecommunications company that provides fixed-line, mobile, and broadband services in the UK and other countries worldwide.
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Analysts Bullish on BT Group Shares
Overall, analysts maintain a positive outlook on BT shares, given its progress toward meeting its FY25 targets. The company aims to achieve a normalized free cash flow (NFCF) of £1.5 billion for FY25, up from £1.28 billion last year. Alongside boosting cash flows, BT Group expects adjusted revenue growth of 0-1% for FY25, with adjusted EBITDA projected to rise to £8.2 billion from £8.1 billion in FY24.
Moreover, analysts are also optimistic about the company’s cost-saving initiatives. In its FY23/24 results, the company announced that it had passed the peak of its capital spending on fiber broadband expansion and achieved £3 billion in cost savings. BT Group now targets an additional £3 billion in savings by the end of 2029.
Over the last three months, the stock has received two Buy ratings from analysts. In July, Barclays analyst Maurice Patrick confirmed a Buy rating on the stock. He expects an upside of 45% in BT shares. Similarly, Berenberg Bank reiterated a Buy rating on BT stock last month. However, it predicts a modest growth of 4.6%.
BT Group’s Recent Dividend
BT Group declared a total dividend of 8p for the fiscal year 2023/24, an increase from the 7.7p paid the previous year. This included a final dividend of 5.69p and an interim dividend of 2.31p per share.
What Is the Prediction for BT Stock?
According to TipRanks consensus, BT.A stock has received a Moderate Buy rating, based on two Buy recommendations. The BT Group share price target is 185p, which reflects 25% upside potential from the current trading level.
