Broker snap: BT target up on cash flow growth

10th Dec 2009 09:42

Morgan Stanley has maintained its 'overweight' stance on BT and increased its price target to 190p from 175p previously.The broker says its rating is based on a clear path to £1.7bn Free Cash Flow To Equity (FCFE) before net pension top-ups by the 2012 full-year."This is necessarily a "show me" story - only via quarterly evidence of execution can the market be convinced that £1.7bn of pre net pension top-up FCFE is feasible," it said.