For a brief moment it looked like it would hold above 200p, but it slipped back in May after the company reported softer revenue and higher-than-expected infrastructure investment.

With tomorrow’s (23 July) Q1 trading update due, the big question is: will BT show enough progress on cash flow and cost savings to justify buying the shares?

What the numbers are telling us

Several valuation models currently point to the shares being significantly undervalued. One ultra-optimistic estimate of 375p suggests they could be trading about 50% below fair value.

Consensus 12‑month price targets are in the 220p–225p range – roughly 15%–17% above today’s level. The most pessimistic analysts eye a 143p target, while the top end are aiming for 330p.

Of the 17 analysts I researched, seven give it a Buy rating, four a Hold, and six a Sell, which feels like a fairly balanced view.

Looking at the latest results, that’s not surprising.

Full‑year figures to 31 March 2026 showed adjusted revenue of £19.6bn, down 4%, while adjusted EBITDA edged up to £8.23bn. Normalised free cash flow came in at around £1.5bn, with management guiding for £2bn this year and £3bn by 2030.

Income-wise, it declared a full‑year dividend up 2% to 8.32p per share, giving it a 4.2% yield. The group seems fairly confident about its ability to keep growing the dividend by low‑to‑mid single-digits going forward.

On valuation, its trailing price-to-earnings (P/E) ratio sits around 17.3. That’s not bargain‑basement but is below some historic levels. If cash flow beats expectations tomorrow, that multiple could reduce quite quickly.

Here’s a quick snapshot of its key financials:

Does that mix of moderate growth, cost discipline and a decent yield justify buying the shares today? That depends on your risk tolerance 

Key risks right now

First, revenue is still under pressure, with group sales down 4% last year. Second, BT’s debt is no joke, and it’s still spending heavily on fibre and 5G. Those projects need to start delivering cash – and soon.

Competition is also intense in fixed‑line broadband: alternative networks are challenging Openreach, potentially causing 800,000 line losses this year.

These challenges, along with any change to pricing regulations or digital infrastructure policy, could derail the recovery.

So, what’s the verdict?

BT is unlikely to ever be a particularly risky stock pick, seeing as it’s a critical part of the UK communications landscape. But price performance still hinges on management delivering those cash‑flow and cost‑saving goals – and the market gets tougher each day.

In my view, it still offers strong defensive characteristics and there’s certainly some recent improvements that add to the appeal. The stable 4.2% yield, the commitment to gradual dividend growth, and the potential for free cash flow to rise towards £2bn this year are all positives.

At the same time, there are similarly strong FTSE 100 companies with even better numbers right now, so it really depends how confident you feel about the fibre rollout paying off.

I’m on the sidelines for now, so I’ll wait and see if tomorrow’s update delivers any unexpectedly good news.

What income stock do we like better than Bt Group Plc right now?

One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.

And the best bit is that you can see if for yourself, right now, absolutely free of charge!

No jargon. No hard sell. Just a clear look at an income share we think is worth your time.

Mark Hartley does not hold any positions in the companies mentioned.

The post Are BT shares a buy ahead of tomorrow’s Q1 trading update? appeared first on The Twelfth Magpie.

And yet even after that impressive run, the shares still offer a 4.3% dividend yield today, nearly 50% more than the 3% offered by a typical FTSE 100 index fund. So should I be considering BT for my income portfolio?

The income case is getting stronger

The headline numbers from its 2026 fiscal year (ended in March) are genuinely encouraging. Pre-tax profits rose 8% to £1.4bn, and BT hit every single one of its financial targets for the year

More importantly for income investors, the full-year dividend was raised to 8.32p per share, and the board has now adopted a formal policy to grow the payout by low-to-mid-single-digit percentages every year going forward.

That’s a meaningful commitment from management. And it’s backed by a clear cash trajectory with normalised free cash flow expected to hit £2bn in the 2027 fiscal year and £3bn before the end of the decade. For reference, normalised free cash flow currently sits near £1.5bn.

Meanwhile, the group’s transformation plan’s running ahead of schedule. Management’s already delivered £1.5bn in gross annualised cost savings and has subsequently increased the overall savings target to £3.7bn.

At the same time, the business is also hitting critical operational milestones, with full-fibre broadband now covering more than two-thirds of UK homes.

In other words, BT’s simultaneously expanding its telecoms empire and becoming more efficient in the process. That definitely bodes well for long-term dividend sustainability. So is this a top-notch income stock, or is there a catch?

What’s holding BT shares back?

Despite the improving trajectory, there are a couple of risk factors worth flagging and the biggest and long-standing issue is BT’s substantial obligations.

Net debt currently stands at £20bn, and the pension deficit has nudged up to £4.2bn. That’s a significant financial burden, and it’s the main reason the dividend policy’s explicitly tied to reaching a BBB+ credit rating before any enhanced shareholder returns are considered.

Another point of contention is revenue growth, or rather the lack of it. Even with a rapid fibre and 5G rollout, total group revenues were actually down by 3%. And looking to the 2027 fiscal year, this downward trajectory’s expected to continue.

The situation’s a little complex. But in oversimplified terms, BT’s ageing legacy voice business is shrinking faster than the newer fibre and mobile products can replace it. And there’s a good chance this trend will continue into the future, before an inflexion point can be reached.

So what should investors make of all this?

What’s the verdict?

BT shares aren’t a shortcut to explosive growth. The company’s in the middle of a genuine transformation, making real progress, and now offering investors a rising dividend backed by a clear and credible cash flow plan.

However, debt reduction remains the ultimate priority for management. That’s definitely prudent. But for income investors who are interested it will demand patience. And in the meantime, there are other income stocks offering far more attractive cash-covered yields today, such as…

What income stock do we like better than Bt Group Plc right now?

One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.

And the best bit is that you can see if for yourself, right now, absolutely free of charge!

No jargon. No hard sell. Just a clear look at an income share we think is worth your time.

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post Should I buy BT shares for their 4.3% dividend yield? appeared first on The Twelfth Magpie.

It does look like some investors have been doing exactly that. But if analysts at Berenberg are worth listening to, following the crowd might be a bad move right now.

Expert upgrade

Berenberg recently raised its price target on BT from 250p to 300p following May’s full-year results. And in a note published on 14 July, the private bank reaffirmed that target on the back of improving consumer trends and growing confidence.

A share price target of 300p would mean a terrific 53% surge from the price at the time of writing. And that would be enough to turn £5,000 invested in BT shares today into as much as £7,650 over the next 12 months. And this is at a time when forecasts also suggest a 4.2% dividend yield to add a bit of icing to the cake.

So why isn’t everyone rushing to hit their Buy buttons and driving the BT share price back up? Well, there’s actually a range of price targets out there, and not everyone has such a rosy outlook.

Bearish stance

Looking at consensus estimates, I see a lowball target of just 143p from someone. And that could be a worry if it proves accurate. But I can’t find it as a specific note, and I can’t uncover the broker behind it.

The lowest identifiable price I can find issued in 2026, and still current, is from UBS in May. That’s a Sell recommendation, with the price predicted to drop to 175p. It’s still not good. But it does seem like a bit of an outlier, as most analysts have been raising their targets during the course of 2026.

What’s the beef?

None of this means much if BT isn’t pulling off the transformation it needs. And on that score, FY results looked impressive.

OpenReach full fibre broadband and 5G+ network growth again reached targets ahead of schedule, and the company once again posted optimistic financial guidelines.

Today we’re announcing an increased full year dividend of 8.32 pence per share and an updated dividend policy, and we are reiterating our guidance of sustained growth, including cash flow inflection to c. £2bn in FY27 and to c. £3bn by the end of the decade.

CEO Allison Kirkby, 21 May 2026

But there’s one problem. Revenue isn’t growing and fell 3% in 2025-26.

Buy, or not?

I’m always drawn back to BT’s huge debt pile — hovering around £20bn for years now, with little sign of coming down. And it does seem to hit the share price. I’d like to see BT working on the liquidity it needs for growth in 10 years’ (and 20 years’) time. So I won’t buy.

But I’ve always thought income investors happy to just keep taking the dividends might do well to consider BT shares. They have to be worth thinking about…

Should you invest £5,000 in Bt Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bt Group Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post Down from a 5-year peak, here’s how high this expert thinks BT shares could soar appeared first on The Twelfth Magpie.

So the question now is, can the company continue to march upward? Or is the rally losing steam? Here are the latest projections…

What do the experts think?

Despite BT Group making some genuinely impressive progress in repairing its balance sheet, the opinion among institutional analysts in July is pretty much split.

Of the 19 experts tracking the business, 10 currently rate it as a Buy while six have put it into the Sell category, with the others adopting a wait-and-see Hold recommendation.

This divergence of opinions also materialises in BT’s 12-month share price forecasts.

One analyst thinks that if the telecommunications giant continues to restructure and optimise its operations, then BT shares could potentially reach 76% higher at 330p. Yet at the other end of the spectrum, the more pessimistic outlook suggests BT shares could start tumbling to as low as 143p, or a 24% decline from current levels.

In other words, if I were to invest £5,000 today, by this time next year I could have anywhere between £8,800 and £3,800. Needless to say, this is a pretty wide range of outcomes. So who’s right?

The bull versus bear argument

BT’s latest full-year results gave plenty of room for optimism. Its Openreach business surpassed 4.8 million new premises with full fibre broadband, bringing the total to 23 million – a number that’s expected to rise to 25 million by December this year.

At the same time, free cash flow’s also on a clear upward path, reaching £1.5bn, and on track to climb to £3bn before the end of this decade. And what’s more, the Verizon joint venture that was announced last month adds a further new dimension.

By combining its international operations with Verizon’s international enterprise arm, the joint venture is expected to generate $4bn in annual revenue – half of which will go to BT.

So why are some analysts still sceptical? Even with this encouraging progress, BT’s core problems remain unsolved. The debt pile’s still ginormous, with close to £22bn of loans and lease liabilities still on its balance sheet.

Meanwhile, cash generation might be improving, but growth remains elusive with the top line still shrinking, albeit modestly. And it seems that some analysts aren’t convinced that, in a market as fiercely competitive as telecommunications, BT will be able to reignite its growth engine.

So what should investors make of all this?

The bottom line

BT’s transformation is undeniably working. The fibre build’s the fastest in Europe, cash flow’s inflecting sharply, and the Verizon deal’s a strategically sensible simplification of a business that was once spread far too thinly.

But overall, I remain unconvinced. While I’m not as pessimistic as some bearish analysts, unless BT can get revenue growing meaningfully again and put a dent in its debt pile, I think the BT share price will struggle to maintain its recent momentum. That’s why I’m keeping this stock on my watchlist for now.

Should you invest £5,000 in Bt Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bt Group Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post Near 5-year highs, here’s what the experts say about the BT share price appeared first on The Twelfth Magpie.

Or perhaps I should say ‘answers’.

After all, the share price has moved around a fair bit in recent years. I think that movement actually illustrates some concepts that are of more general interest even to investors who do not own BT shares.

Up over 90% in a couple of years

Take someone who invested in May 2024, just over two years ago.

Since then, the BT share price has grown by an impressive 91% (in fact, by last month it was up 122%, but it has fallen in recent weeks).

So, the investment would have close to doubled in value in just over five years.

Compare that to the five-year record. During that period, the BT share price has actually declined, albeit only by less than 1%.

Still, it is bad enough that it has gone nowhere in five years. That is particularly disappointing given that the wider FTSE 100 index of leading British shares has moved up by 50% during those years.

A couple of simple but important investing lessons

That demonstrates that when people talk about something being ‘a good share to buy’ or ‘a bad share to buy’ they are only talking about part of the picture. Price always matters.

BT shares a couple of years ago and BT shares five years back are the same beast. What changed between those moments and now is the business performance and investors’ assessment of it.

So, no matter how good a company may be, the price someone pays for it is important when determining whether it may also make a good investment.

Billionaire investor Warren Buffett summarises this by saying that he looks for “great companies at attractive prices.”

While the BT share price has underperformed the FTSE 100 in terms of capital gain over five years, one area where it currently beats the index is dividend yield. It offers 4.2%, well above the Footsie’s 3.1%.

Again, though, purchase price matters. After all, dividend yield is a function of both annual dividends per share and the price paid for that share.

So while someone who bought five years ago almost at today’s share price would be earning a 4.2% yield now, someone who bought just over two years back at a much lower price would today be earning closer to 8%.

Here’s my take

I have looked at BT’s business and share price at various points over recent years.

Some parts of its business, like its Openreach broadband network, seem like they have long-term potential to me. On top of that, BT’s brand remains well-known (if not universally liked) and its legacy business is substantial.

What put me off before was more the business itself than the share price. Much of it is focused on managing decline, rather than growing. The company’s revenues fell last year, as they had the prior year.

It is also saddled with historic pension liabilities that can periodically require substantial additional cash, a risk I do not like. I think there are more exciting opportunities in today’s market.

I have no plans to invest in BT – but am glad to be reminded of some useful investing lessons by it!

Should you invest £5,000 in Bt Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bt Group Plc made the list?

Christopher Ruane has no position in any of the companies mentioned.

The post Why has the BT share price almost doubled – yet gone nowhere? appeared first on The Twelfth Magpie.

But if we can still buy BT shares around where they were five years ago, is this an opportunity not to be missed?

Our record-breaking Openreach full fibre build hit its upgraded target and today reaches more than two-thirds of UK homes and businesses, keeping us well on track for our 25 million milestone by the end of December. We extended our mobile leadership further, with EE winning best mobile network in three separate awards, bringing 5G+ to 73% of the population.

— Allison Kirkby, FY 2026 results

The recent share price reversal kicked in just before May’s full-year results, so let’s remind ourselves of a few highlights….

• Record FTTP build reached 4.8m premises in the year.
• Record customer demand for Openreach FTTP saw 2.2m net additions.
• BT achieved £580m gross annualised cost savings during FY26.
• EE remains the UK’s best mobile network.

That final point might be a bit subjective. But BT says a number of independent industry assessments support it.

All about the cash

We can’t hide from one key thing. Investing in BT shares is mostly about the dividend.

Dividends need cash. And cash is greatly helped by lowering costs. To that end, in this latest report BT spoke of an “overall transformation plan target raised to £3.7bn from £3bn and extending the programme by one year to FY30, at a cost to achieve of £1.4bn from £1bn.”

And on the dividend itself, the update revealed an “updated dividend policy to grow the dividend by low-to-mid-single-digit percent per annum in FY27 and onwards until metrics consistent with a BBB+ credit rating are reached; thereafter residual cash flow will be available for enhanced distributions to shareholders.“

Management, it seems, is firmly behind BT’s longstanding policy of prioritising dividends.

So why not buy?

BT shares are on an undemanding forward price-to-earnings (P/E) ratio of 14.5. And it would drop to 13.3 based on forecasts out to 2029. The dividend yield is modest at 4.1%, but still pretty respectable — and we have those bold dividend plans. So the question has to be why shouldn’t we buy at today’s price?

The answer for me is relatively straightforward — BT’s net debt has reached £20bn. That matches the company’s entire market cap. And it makes those P/E valuations largely meaningless. So I’m out, essentially because I have a rule to not invest in heavily indebted companies.

But for those who can put that aside and just keep taking the dividends, BT must be worthy of consideration.

Should you invest £5,000 in Bt Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bt Group Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post Down 16% in 5 weeks, are BT shares just too good to miss? appeared first on The Twelfth Magpie.

However, this is just a transitory factor in what is now a classic short-term-risk/long-term-reward play, in my view. The telecoms giant may be the focus of a further temporary bout of political noise surrounding its ownership.

But the underlying investment case has not changed: earnings are improving, cash flow is turning, and the heavy fibre‑build phase is now past its peak.

So what long-term share price am I targeting?

What’s the ‘fair value’ of the stock?

Historically, asset prices (including shares) converge to their fair value over time. This value represents the true worth of the underlying business over the long term.

Discounted cash flow (DCF) analysis identifies where this fair value is by using forecasts of a business’s future cash flows and discounting them back to today. When those forecasts become less straightforward, the discount applied increases.

Analysts’ DCF outcomes may vary due to different assumptions used, but in my modelling — including a 9% discount rate — BT appears 34% undervalued at its current £2.03 level.

That places fair value around £3.08 — significantly higher than the present price. So, provided markets continue drifting towards fair value, this could be a great potential buying opportunity if that DCF modelling holds good.

Is this justified by the core business?

Ultimately, any firm’s long-term share price gains are powered by sustained rises in its earnings.

A risk for BT is any renewed spike in capital expenditure if network upgrade requirements change. Another is the potential for tighter regulatory oversight of broadband pricing or wholesale access. This could limit BT’s ability to expand margins even as fibre penetration improves.

Nonetheless, analysts forecast the firm’s earnings will grow by a yearly average of 11.8% to end-2029 at minimum.

A dividend bonus too?

BT also offers shareholders sizeable dividends, with the current dividend yield at 4.1%. That sits well above the present FTSE 100 average of 3.1%.

However, analysts expect these returns to rise to 4.2% next year, 4.4% in 2028, and 5% in 2029.

So, a £20,000 holding in the stock (the same as mine) would make £12,940 in dividends after 10 years and £69,355 after 30 years.

These figures are not guaranteed. They assume the forecast 5% as an average, although that could go down (or up) over time. They also factor in the dividends being reinvested into the stock to harness the power of dividend compounding.

By then, the total value of the shares (including the £20,000 stake) would be £89,355. That would deliver an annual income from dividends alone of £4,468.

My investment view

BT’s combination of strengthening earnings and cash flow makes the current valuation look a bargain to me. The shares also offer an attractive dividend stream, which adds meaningful long‑term return potential on top of any capital gains.

For investors willing to look beyond the short‑term uncertainty, BT strikes me as a long‑term value opportunity to consider.

I will certainly be buying more of the stock, and have my eye on other deeply undervalued, high-yield shares in other sectors.

Should you invest £5,000 in Bt Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bt Group Plc made the list?

Simon Watkins owns shares in BT.

The post Down 16% to around £2.03! Here’s where BT’s bargain-basement shares ‘should’ be trading right now appeared first on The Twelfth Magpie.

But the question now is: can it continue to climb even higher to 300p? Here’s what the experts are saying.

The rally might not be over yet

There’s a long list of institutional analysts following this FTSE 100 enterprise. But among the most bullish stands Berenberg. And just last month, it raised its share price target for BT from 250p to 300p following the company’s latest results.

Specifically, it cited that the 4% increase in average revenue per user (ARPU) from BT’s Openreach arm signals the business isn’t having to work as hard as originally feared to compete with alternative network operators. And that while broadband line losses will likely continue for a few more years, this should start to slow as fibre coverage expands.

Yet perhaps most interesting is the deregulation angle. Berenberg said a return to cost-based access price regulation after 2031 remains in its forecasts, but that deregulation’s looking increasingly likely.

If Openreach is eventually allowed to launch geographical discounts and gain more pricing freedom, the share price forecast jumps even higher to 350p!

In this scenario, BT shares could secretly be a terrific stock to buy right now. But as every experienced investor knows, forecasts aren’t set in stone. So what do investors need to watch that could derail Berenberg’s bullish outlook?

What could hold BT back?

The bull case for buying BT shares is clear. The company has a fibre rollout that is ahead of schedule, a recovering consumer division, and an Openreach business that is proving more resilient than many feared. And combined, these forces are translating into new earnings momentum.

Providing these trends continue, that means more free cash flow generation becomes available to pay down debts, cover infrastructure spending, and issue juicier dividends.

However, even investors as bullish as Berenberg have flagged several crucial risks.

BT still carries a significant debt load, and competition from alternative network operators like CityFibre and Hyperoptic isn’t going away. If broadband line losses persist longer than expected or pricing pressure intensifies, the earnings recovery might not be as impressive as bullish investors hope.

So is this a risk worth taking? For me, the heavy debt burden’s a turn-off. Management definitely seems to be taking the right steps to bolster cash flows and tackle the elevated gearing. But until I see more progress made in deleveraging the balance sheet, BT is staying on my watchlist.

But there’s no denying the business definitely has the potential to climb from here.

Should you invest £5,000 in Bt Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bt Group Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post The BT share price is already up 91.5% in 2 years! Can it hit £3? appeared first on The Twelfth Magpie.

But we can make mistakes if we’re not careful. I rate these as some of the biggest…

Avoid dividend greed

Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.

— John D. Rockefeller

Am I going against one of the wealthiest Americans of all time? Well, no. But it can be a mistake to focus solely on the highest dividend yields.

Sometimes the cash just isn’t there to sustain a big dividend, and it ends up being cut — the way Vodafone slashed its payments in half in 2025. Many investors now see Vodafone’s rebased dividend as an attractive proposition, to be fair. But it made a dent in some passive income portfolios at the time.

The converse is that it can be a mistake to assume the worst and just assume a big yield is a no-go. I see Greencoat UK Wind, with its 10% yield, as an example of that. The renewable energy company is struggling with weaker asset values, which is a risk. But it’s raised its dividend ahead of inflation for 12 years in a row — and plans to keep doing so.

Ignore total return at your peril

Know what you own, and know why you own it.

— Peter Lynch

Do you buy a stock just because it’s a dividend stock? Or because it’s a growth stock? All companies, over the long term, are potentially both. And we really should balance how well they do on a combination of cash returns and share price moves.

BT Group (LSE: BT.A) has been a popular dividend stock for many years, and still is. We’re looking at a forecast yield of around 4.1% for the current year. That’s not huge, but BT has a strong dividend policy. At FY26 results time in May, the company reiterated its plan “to grow the dividend by low to mid single digit percent per annum in FY27 and onwards“.

Keeping the dividend going is one thing. But things like soaring debt and huge capital expenditure tends to mean something has to give. And look what’s happened to the BT share price. It’s fallen 53% over the past 10 years.

I’m not saying don’t buy BT. I’m just saying… it’s best to examine all aspects of a company before you consider buying it.

Don’t get too focused

We can all search out companies that pay decent progressive dividends. Then narrow it down to those generating enough cash to keep going, and with good track records and dividend policies. And then check the long-term share price performance and be happy the company isn’t destroying value through unwise use of cash.

And then step back and notice… a passive income portfolio concentrated in just one or two sectors.

It’s partly because, at any one time we often see a particular sector or two doing well. And we also tend to focus on the businesses we know best.

So, find good companies that can generate high long-term total returns… but don’t forget to diversify too.

Should you invest £5,000 in Bt Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bt Group Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post Want to get rich on passive income? Here are some mistakes to avoid appeared first on The Twelfth Magpie.

Right now, Vodafone (LSE:VOD), BT Group (LSE:BT.A) and Kingfisher (LSE:KGF) all trade under £3. And while all three are up over the last 12 months, several professional analysts still see them as potential value stocks to buy in June.

So should I be considering these stocks for my portfolio today?

Is Vodafone finally turning a corner?

Many investors still see Vodafone as a slow, heavily-indebted and complicated telecoms group. That’s exactly why the valuation’s low despite showing promising signs of genuine improvement.

Banking advisory service Berenberg recently upgraded Vodafone from Hold to Buy and hiked its price target from 82p to 123p, arguing that the group can deliver sustainable free cash flow and dividend growth over the next four years.

The team at Barclays has also upgraded its outlook, increasing its own share price target from 100p to 120p, pointing to better growth prospects in Germany and the UK, plus the potential benefits of its merger with Three UK.

Across most forecasts, the bull case is that simplification, cost cuts and more focused capital spending could finally unlock the kind of steady cash generation investors have waited years for.

But it’s important to remember that Vodafone has disappointed before. Integration risk around Three, regulatory pressure on pricing, and still‑intense competition mean any setback could quickly erase the value gap that analysts see.

What about BT and Kingfisher?

BT Group remains another controversial telecoms play. JP Morgan recently lifted its price target to 310p, saying it believes the company is “past peak pain” on alternative network competition and that Openreach line losses should now steadily improve.

The analysts at Berenberg have gone even further, raising their target from 250p to 300p, arguing that deregulation of fibre pricing could be a big long‑term upside driver that the market’s current underappreciating.

Similar to Vodafone, this positive outlook hinges on BT executing on its cost-cutting initiatives while also finishing its fibre buildout without blowing the budget. Yet even if it becomes a cash-generative infrastructure business, high debt and large pension obligations nonetheless remain a persistent risk factor to consider.

On the other hand, Kingfisher, which owns the B&Q and Screwfix brands, looks like the most traditional retail value stock of the three.

Analyst opinion here is very mixed. Barclays, Jefferies, and Berenberg have all issued a Hold recommendation but have placed share price targets at around 300p – above where Kingfisher shares trade today.

Clearly, the pros aren’t entirely convinced of the potential value opportunity here, particularly with the current sluggish state of the DIY market. But the brands nevertheless remain strong with self-help initiatives already underway to boost margins.

Which value stock looks most promising?

All things considered, BT Group seems to be offering the most interesting potential. Capital expenditures have already peaked, it remains a critical national infrastructure asset, and management has already begun delivering visible cost savings.

That’s not to say it’s a guaranteed winner – far from it. But it’s definitely a business worth investigating further for a potential bargain hiding in plain sight. That’s why I’ve already added it to my watchlist.

Should you invest £5,000 in Bt Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bt Group Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

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