Broker snap: C.Suisse reiterates outperform on BT despite Europe

25th Nov 2011 10:16

Analysts at Credit Suisse have this morning reiterated their outperform stance on shares of BT Group. The above despite cuts to their forecasts for BT´s Global IT Services division, on the back of economic weakness in the Eurozone. As well, Credit Suisse now expects to see less growth in market lines at BT´s retail division. As a result of both of the above these analysts now estimate that BT Group´s 2013 and 2014 group revenues will come in 1% below market consensus. However, they are more optimistic than other analysts as regards the company´s ability to cut costs and see positive trends in UK wireline growth. They also see higher prices in broadband. Quite interesting as well, the broker also points out the now lower pension risk, saying that, "pension risk materially reduced over past 12 months-following a positive ruling on the Crown Guarantee, a reduction in the inflation rate used and the move to CPI reducing the IAS deficit to £2.5bn (net) end Sep 2011."Credit Suisse reiterates its outperform rating on the company´s shares with a price target of 220p. AB