BT Share Price Set to Soar: Analysts Predict 200p by Year-End
The BT share price has experienced a significant surge over the past year, rising 25% to 166p. According to an article by The Motley Fool UK, a leading financial publication, the stock may be poised to reach 200p by the end of the year. As reported by The Motley Fool UK, several large institutions, including HSBC and Morgan Stanley, have a positive outlook on the company, with target prices of 220p and 225p, respectively.
The Motley Fool UK notes that while analysts’ views are subjective, the research teams at these institutions spend considerable time investigating the company before making recommendations. This backing from experts is a promising sign for BT’s future performance. As The Motley Fool UK points out, it is essential to consider multiple perspectives, and other banks and brokers may have different views.
The Motley Fool UK highlights BT’s efforts to improve operational efficiency, including cost-cutting strategies. Despite a 3% decline in revenue in the latest quarter, adjusted EBITDA rose 4% to £2.1bn due to the focus on cost management. According to The Motley Fool UK, the company attributed the revenue fall to “continued challenging non-UK trading conditions.” The publication believes that if BT can maintain this trajectory, profits are likely to rise further.
The Motley Fool UK article notes that BT’s current price-to-earnings (P/E) ratio is 8.98, and the publication uses 10 as a benchmark for a fairly valued stock. Assuming BT can grow profit by 4% per quarter and the P/E ratio rises to 10, The Motley Fool UK estimates that the share price could reach 207p. The publication acknowledges that one risk to this view is if cost-cutting measures stifle growth and impact customer service, which could negatively affect long-term share price performance.
In addition to the potential for capital growth, The Motley Fool UK highlights the attractive dividend yield offered by BT, currently standing at 4.82%. This makes the stock an appealing option for investors seeking both dividend and growth potential. As The Motley Fool UK notes, even if the stock doesn’t reach 200p in the short term, investors can still benefit from the generous dividend yield, which can be used to purchase more BT stock or invest elsewhere.
According to The Motley Fool UK, the combination of potential capital growth and dividend income makes BT a compelling investment opportunity. As the publication concludes, “I think the drive can continue, which should enable profits to rise further.” The Motley Fool UK’s analysis suggests that BT’s share price could indeed reach 200p by the end of the year, making it a stock worth considering for investors.
The Motley Fool UK’s report also mentions that investors should consider multiple perspectives and do their own research before making any investment decisions. As The Motley Fool UK notes, “Other banks and brokers might have a different view.” The publication encourages investors to weigh the potential risks and rewards before making a decision.
For further information, please visit: https://www.fool.co.uk/2025/05/20/heres-why-i-think-the-bt-share-price-could-hit-200p-by-year-end/
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