Broker Bernstein today downgraded Telecoms giant BT plc (BT-A.L) putting the companies shares under potential pressure. The broker sited potential overspending on TV rights and competition from rivals such as Virgin Media when downgrading the company to ‘market-perform’ and giving a fair value price of 385p.
With the upcoming auction of live sports rights and in particular premiership football the broker fears that BT may end up overspending in this area and it attempts to continue competing with wealthy opposition in the form of Sky Sports. The broker also highlighted Virgin Medias current cost cutting campaign and that BT may then come under increasing competition pressure as Virgin gains momentum.
Bernstein said: “None of these risks are necessarily imminent, but all are potentially significant, so we find it hard to find a compelling higher valuation.”
Broker Bernstein today downgraded Telecoms giant BT plc (BT-A.L) putting the companies shares under potential pressure. The broker sited potential overspending on TV rights and competition from rivals such as Virgin Media when downgrading the company to ‘market-perform’ and giving a fair value price of 385p.
With the upcoming auction of live sports rights and in particular premiership football the broker fears that BT may end up overspending in this area and it attempts to continue competing with wealthy opposition in the form of Sky Sports. The broker also highlighted Virgin Medias current cost cutting campaign and that BT may then come under increasing competition pressure as Virgin gains momentum.
Bernstein said: “None of these risks are necessarily imminent, but all are potentially significant, so we find it hard to find a compelling higher valuation.”
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