Quantcast
Menu
Save, make, understand money

Experienced Investor

Share Centre share of the week: BT

Kit Klarenberg
Written By:
Kit Klarenberg
Posted:
Updated:
14/09/2015

Ian Forrest, investment research analyst at The Share Centre, picks BT as share of the week.

“UK telecoms provider BT is an attractive choice for investors this week. This year, BT announced its acquisition of EE, putting it in a very strong market position in the UK. The company also accelerated the roll-out of its fibre optic programme and expects to have 90 per cent UK coverage by the end of 2017.

“Despite these good revelations, investors will be aware the group’s first quarter results in July showed revenue down by 2 per cent. However, during this period BT did importantly sign up 100,000 new customers to its mobile service. Those interested in the group should note that since these figures, the company has confirmed it is on track to meet full year expectations.

“Amidst development in the UK, BT is also investing to expand its operations in Asia and Latin America where it sees strong potential for further growth. Investors will additionally be attracted to the expectation its dividend yield may grow by 10-15 per cent per annum over the next two years.

“The shares look fairly good value at the moment, so we believe now may be a good time to ‘buy’. Shares in the group are best suited to lower risk investors looking to achieve a balanced portfolio.”

[article_related_posts]