() is looking toppy according to Berenberg, which has downgraded its rating to ‘hold’.
Shares in the telecoms giant have risen by 75% since the German broker upgraded to ‘buy’ in August last year.
Many of the catalysts that the broker predicted have happened, it said, and going forward the broker sees reasons to be more cautious.
Notably, guidance for the next two years is challenging and particularly BT’s target of “at least £7.9bn EBITDA” in 2022/23.
and O2 UK getting approval also ratchets up the competition and is said to be readying plans for enlarged, long-term network build targets raising the concerns about overbuilding.
Union unrest is also possible with talks set for this month while Ofcom is due to publish a consultation this quarter on annual licence fees (ALFs) for the 2100MHz spectrum.
In short, BT looks cheap on earnings metrics, but expensive on cash flow, says Berenbergthough it has raised its share price target to 175p (from 165p previously).
Shares today eased 1.3% to 169.7p.