BT Share Price Forecast September 2021 – Time to Buy BT Stock?
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Shares of the leading global telecommunications service company of Britain (LSE: BT.A) are in the red today at £161.65 as of September 3rd (08:04 UTC+1). The BT share price has dropped considerably in the past few days after achieving a 52-week high of about 205p near the end of June, this year. While this sudden dip in the recent weeks may seem off-putting to many short-term investors, long-term investors might see this as a profitable trading potential.
BT – Technical Analysis
According to BT Group’s financial statement, the market cap of the company is at £16.712B with total assets worth £50.877 billion. Revenue for 2020 was at £21.40 billion compared to £22.81 billion a year ago.
Moving averages for BT such as Exponential Moving Average (10)(167.78), Simple Moving Average (10)(168.17), Exponential Moving Average (20)(171.00), and Simple Moving Average (20)(171.86) are pointing towards selling. Oscillators including Relative Strength Index (14)(26.84), Stochastic %K (14, 3, 3)(11.25), Average Directional Index (14)(32.05), and Awesome Oscillator (−7.88) are neutral.
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Recent Developments
The BT Group is a communications services holding corporation with an array of segments including Consumer, Global Services, Openreach, Enterprise and more. The BT share price took a knock previously when it was revealed that CityFibre, a competitor to the Openreach network, is set to receive a £500 million financial increase from a number of investors. This involves Abu Dhabi’s sovereign wealth fund, which oversees a substantial amount of money. While competition will always exist for BT, it is also important to consider that BT is backed by Altice, a telecommunications company with a solid track record. In my personal opinion, it is safe to assume that CityFibre’s acquisition will not cause the FTSE 100 Company to miss its full-fibre broadband targets.
For BT, things are gradually shifting; apart from Altice’s 12 per cent shareholding that will confidently aid in the company’s transition – the FTSE 100 Company lately disclosed the addition of a new board member. As the chairman and an independent non-executive director, Adam Crozier will join BT, which is predicted to be crucial for the company’s turnaround. Crozier was the Chairman of Whitbread, Kantar Group and ASOS, and a non-executive director of Sony Corporation. He has a proven record of transforming businesses, which will be valuable when he joins BT later this year.
Should You Buy BT Shares?
It is extremely short-sighted to sell the shares merely because it will be spending a lot in the coming years. However, there’s a chance that if the organisation’s profits don’t increase in the following two years, the dividend will stagnate, and the share would only offer small gains. It might underperform the market, lowering investor confidence in the BT share price. Nevertheless, it is important to focus on the company’s long-term prospects. BT is still the UK’s largest telecommunications company, with dominance on this infrastructure; but to keep this advantage, BT will have to make a significant investment.
Patrick Drahi, the founder of international telecommunications giant Altice, now owns a 12.5% stake in BT, which indicates the company’s long-term potential. In the next years, we may also witness some merger and acquisition efforts in this industry. Long-term investors may choose to overlook the organisation’s short-term risks and invest in the share for the longer term. Following its recent declines, BT share price is seen to be appealing to investors who are willing to look past short-term uncertainties and concentrate on the company’s long-term growth prospects.
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