MARKET TALK: Nomura Downgrades BT Group To Reduce Vs Neutral

25th Jun 2010 07:57

0657 GMT [Dow Jones] Nomura downgrades BT Group (BT.A.LN) to reduce from neutral, but nudges up the price target to 150p from 145p. Strong momentum on cost reduction allows the company to give clear guidance to '13, says Nomura. However, the good news is mostly priced-in, says the brokerage. "Consensus forecasts [are] quick to discount the upbeat message and recent favorable regulatory moves on pricing." Also, BT has one of the worst revenue growth outlooks in the sector, says the brokerage. It adds that with no more compulsory headcount cuts until the end of '11, BT will struggle to grow Ebitda. On top of this, uncertainty on the dividend outlook will linger. Shares closed Thursday at 132p.([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 25, 2010 02:57 ET (06:57 GMT)