Time to buy BT shares?

BT is one of the UK’s most widely held shares with over 700,000 investors still holding from privatisation in 1984.

They were dealt a heavy blow 24th January when BT unveiled an accounting scandal which sent shares lower by over 20%, one of BT’s worst days in history.

The scandal was limited to a small Italian unit which accounted for only around 1% of earning before interest, tax, depreciation and amortisation (EBITDA) so the material impact wasn’t huge but the damage was done to investors’ sentiment who regarded BT as a ‘safe’ share.

The board was quick to announce they had sought out and removed those responsible to reassure investors that the problem wasn’t rife throughout BT.

CEO Gavin Patterson said of the scandal:

“We are deeply disappointed with the improper practices which we have found in our Italian business…we have undertaken extensive investigations into that business and are committed to ensuring the highest standards across the whole of BT for the benefit of our customers, shareholders, employees and all other stakeholders.”

BT reported earnings later in the week and released key metrics of how their core broadband, TV and telecoms were performing.

Shares have since stabilised and reside only a couple percentage away from intra-day lows set in January and the cheapest level since 2013.

BT PLC Special Report Topics:

  • Should you buy after the recent drop?

  • The impact of the Italian scandal on the wider business

  • Technical levels of key share price support

  • Is the acquisition of EE start bearing fruit?

  •  Key drivers of earnings in 2017/2018

Download your free BT PLC special report now for the latest research from leading City Analysts.


Copyright Fat Prophets® is a registered trade mark/trading name of Mint Financial (UK) Limited, which is authorised and regulated by the Financial Conduct Authority, Number 220591, registered in England and Wales, Number 04255908, with a registered office at 100 Fenchurch Street, London, EC3M 5JD. (www.fatprophets.co.uk)
DISCLAIMER The views and opinions expressed herein are for information purposes only. They are subject to change without notice, and do not take into account the specific investment objectives, financial situation or individual needs of any particular person. They should not be viewed as recommendations, independent research, or advice of any kind. The views accurately reflect the personal views of the author. They are not personal recommendations and should not be regarded as solicitations or offers to buy or sell any of the securities or instruments mentioned. The views are based on public information that we considers reliable but does not represent that the information contained herein is accurate or complete. With investment comes risk. The price and value of investments mentioned and income arising from them may fluctuate. Past performance is not an indicator of future results, and future returns are not guaranteed. We acknowledge an individual’s tax situation is unique and tax legislation may be subject to change in the future.
To provide you with the requested information we will need to contact you using the details provided above, by entering your details you agree to be contacted by Investment Superstore regarding this information and similar educational and promotional material from Investment Superstore. 

More Stocks & Shares Reports: