BT Shares Drop More Than 5% After Morgan Stanley Cuts Stake, Citi Downgrades To ‘Sell’

Shares of telecommunications company BT Group (LSE:BT.A) have dropped sharply after financial services giant Morgan Stanley (NYSE:MS.) reduced its stake in the company significantly.

The move was disclosed in a London Stock Exchange filing, and saw MS reduce its holdings in BT below the 5% threshold, which triggers a regulatory notification.

According to the filing, the company’s total holding in BT Group fell to 4.99% on 13 February, down from their previous position of 5.03%.

More negative sentiment came from Citi Research, which downgraded BT’s stock from “neutral” to “sell”, lowering its target price from £2 to £1.12. Citi cited long-term revenue concerns for Openreach and sustainability risks for BT Consumer’s pricing model.

While BT has been undertaking a major restructuring effort, with plans to cut thousands of jobs and modernize its network, investor confidence remains fragile. Citi’s consensus tracker analysis suggests that market expectations are overly optimistic in predicting a reduction in restructuring costs, estimating £401 m for 2025/26 compared to the consensus of £250 million.

 

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Ltd. ADVFN Ltd does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Comments are closed

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Currencies Direct

• 

  Envion

• 

  Sunil Mangwani

• 

  Chrisoil