BT Group share price continued its strong bull run, reaching its highest point in over seven years as its full-year earnings loomed. It jumped to 240p, up by over 140% from its lowest point in 2024.
BT Group shares are soaring ahead of earnings
BT, the top telecom company in the UK, has done well this year, as investors predict that its turnaround efforts will work out. Also, unlike other companies, it is not heavily exposed to the ongoing geopolitical issues in the Middle East.
The next important catalyst for the stock will be its full-year earnings report, which comes out on May 21st. According to its latest consensus, the company’s annual revenue is expected to come in at 19.6 billion pounds, down by 3.4% from the last financial year.
Most of its segments are expected to record a deterioration, with its consumer revenue falling to 9.523 billion pounds. The business and its international segments are expected to slow to 5.2 billion and 2.16 billion pounds, respectively.
The only business expected to grow is its OpenReach brand, which connects most homes in the UK through its fibre. Its revenue is expected to come in at 6.17 billion pounds from the previous 6.15 billion a year earlier.
BT’s profit, on the other hand, is expected to continue growing. The closely-watched EBITDA figure will come in at 8.214 billion from the previous 8.209 billion pounds.
The company has used several approaches to improve its profitability. It has reduced its capital expenditure, which peaked a few years ago amid the Openreach rollout, and announced plans to slash workers.
BT Group faces some major challenges. The most notable one is the deterioration of its business segment, whose legacy solutions like landlines and networking are slowing. Competition in the industry has continued rising.
At the same time, the company’s broadband service has continued to lose substantial subscribers. In the last trading statement, the company said that its annual churn this year will be over 800,000 customers, lower than the over 1 million that analysts were expecting.
BT share price has more upside to go
BT Group stock chart | Source: TradingView
The weekly chart shows that the BT Group stock has been in a strong bull run in the past few months. It recently crossed the important resistance level at 207p, the upper side of the cup-and-handle pattern, a common continuation sign.
The cup has a depth of 105p (207p minus 102p). Therefore, adding this number to 207p gives the target price at 309p. Such a move would be a 30% upside from the current level.
The bullish outlook is also being supported by other indicators. For example, it remains above all moving averages, a sign that bulls are in control.
Additionally, top oscillators like the Relative Strength Index (RSI) and the MACD have continued rising. It also remains above the Ichimoku cloud and the Supertrend indicator.
The only caveat is that this outlook is based on the weekly chart, meaning that the target may take weeks or months to be achieved.
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