DB sticks to a sell on BT despite slightly better than expected quarter

Deutsche Bank has reiterated its ‘Sell’ rating on BT Group PLC (LSE:BT.A) with a 150p price target, citing around 23% downside potential despite a slightly better-than-expected first quarter and reiterated guidance. The British telco's trading update showed UK service revenue came in 0.3% ahead of forecasts and EBITDA was 0.2% better, though revenue growth slowed. Openreach line losses improved from the fourth quarter but remained softer year-on-year, with BT still expecting around 800,000 losses in FY27. Deutsche Bank noted that while the shares may benefit from the absence of negative surprises after retreating from recent highs, there is “little reason to be more constructive” given significant competitive risks in the UK market.