BT.A - BT GROUP PLC - LONG
This is an analysis of BT GROUP PLC - a British telecom company, the following is strictly my own personal opinion and does not constitute financial advice.
Key numbers:
Dividend yield TTM - 6.47%
P/B - 0.81
P/E - 5.56 (currently)
Market cap 11 817 MGBP (11.8BGBP)
Analyst estimates:
Analyst estimate average for BT.A is 188.5 GBX which is equivalent to a 65.42% increase from todays price.
Key information:
CEO has been replaced with Telias ex-CEO Alison Kirkby, she claims to have the same vision for the company as previous CEO Phillip Jansen. Telia stock has been following a similar trend as BT.A, and as news was released today both shares dropped. However, analysts believe BT.A is overweight, and the consensus among analysts is that BT.A is a buy/strong buy.
Technical analysis:
BT.A made a bullish divergence on recent support level at 120GBX 11th of July, likely due to uncertainty around the next CEO of the company, the stock consolidated until today. As news came out regarding the change of CEO, shares dropped in price, dropping down to previous support on 110-112GBX - still within the lines of a bullish divergence.
Strategy:
I am currently in possession of BT.A shares with a GAV of 123GBX which I am looking to hold. The lowest sell side analyst target is at 100GBX, and if price continues to drop to support at 95-100GBX and the divergence between relative strength and price continues, I will be looking to increase my position in the stock as long as no unforeseen news arise.
If the price holds above support on the 110GBX level I will not add to my position, and I will follow my original strategy to wait for price to get closer to AVG analyst estimate, or take profit around 160GBX at the stocks previous high. Taking profit at 160GBX will net roughly 34-35% gain when factoring in dividends paid out 13th of September.
Should price drop below the 95-100GBX support level, I will re-evaluate my position and look to liquidate the shares if there is any indication that the fundamental situation of the company has changed for the worse, or if the bullish divergence becomes invalid.
Key numbers:
Dividend yield TTM - 6.47%
P/B - 0.81
P/E - 5.56 (currently)
Market cap 11 817 MGBP (11.8BGBP)
Analyst estimates:
Analyst estimate average for BT.A is 188.5 GBX which is equivalent to a 65.42% increase from todays price.
Key information:
CEO has been replaced with Telias ex-CEO Alison Kirkby, she claims to have the same vision for the company as previous CEO Phillip Jansen. Telia stock has been following a similar trend as BT.A, and as news was released today both shares dropped. However, analysts believe BT.A is overweight, and the consensus among analysts is that BT.A is a buy/strong buy.
Technical analysis:
BT.A made a bullish divergence on recent support level at 120GBX 11th of July, likely due to uncertainty around the next CEO of the company, the stock consolidated until today. As news came out regarding the change of CEO, shares dropped in price, dropping down to previous support on 110-112GBX - still within the lines of a bullish divergence.
Strategy:
I am currently in possession of BT.A shares with a GAV of 123GBX which I am looking to hold. The lowest sell side analyst target is at 100GBX, and if price continues to drop to support at 95-100GBX and the divergence between relative strength and price continues, I will be looking to increase my position in the stock as long as no unforeseen news arise.
If the price holds above support on the 110GBX level I will not add to my position, and I will follow my original strategy to wait for price to get closer to AVG analyst estimate, or take profit around 160GBX at the stocks previous high. Taking profit at 160GBX will net roughly 34-35% gain when factoring in dividends paid out 13th of September.
Should price drop below the 95-100GBX support level, I will re-evaluate my position and look to liquidate the shares if there is any indication that the fundamental situation of the company has changed for the worse, or if the bullish divergence becomes invalid.
Disclaimer
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