21% potential gains? Here’s the 2025 forecast for the BT share price

Jon Smith takes a look at the consensus BT share price target for next year from analysts and adds in his own thoughts.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Over the past year, the BT (LSE:BT.A) share price has risen 15%. This beats the FTSE 100 performance, with BT shares hitting fresh 52-week highs earlier this month. When looking ahead to 2025, I’ve been looking at the consensus forecasts from some of the big banks and brokers. Here’s the key points for investors to note.

Views from the experts

Of the 18 analysts included in the forecast submission, the average price target for the next year is 192p. When using the current share price of 158p, this indicates a potential increase of 21%.

Not all the research teams are on the same page though. HSBC has a target of 200p, above the average. On the other hand, the Deutsche Bank price forecast is only 140p.

Should you invest £1,000 in Phoenix Group Holdings Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool 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 Phoenix Group Holdings Plc made the list?

See the 6 stocks

Yet instead of focusing on just one contributor, taking the average is actually a good way for me to get an overall sentiment check for the stock. Based on the 192p figure, it’s clear to me that the overall skew of views is that there’s the potential for BT shares to keep moving higher next year.

As a disclaimer, forecasts don’t mean that the stock will definitely hit this level in the next year. They’re still only subjective views of the analyst or team.

Created with Highcharts 11.4.3Bt Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Why the stock could do well

BT shares could rally next year, thanks to improving financials. In the latest half-year report, the CEO noted that as the full fibre roll out continues, “the cost to build continues to reduce, enabling us to increase this year’s build target to 4.2 million with no additional capex spend”.

In 2025, I expect cost pressures to continue to ease now the business has reached scale in the roll out. Further, investors should see this benefit pass through to stronger cash flow, which could enable the firm to allocate money towards new projects or even boost the dividend.

It’s interesting to note that outside investors are taking stakes in the company. Billionaire Carlos Slim continues to build his stake in the firm, now at 4.3%. Further, India’s Bharti Global recently completed the purchase of a 24.5% shareholding. In my view, high-profile stakes like this are a good sign for the future.

Caution needed

Despite all this good news, investors still need to be careful when thinking about investing here. For example, even with easing cost pressures, the company recently downgraded revenue guidance. This was put down to a “competitive retail environment”.

Ultimately, lower revenue’s an indication of lower demand from consumers. It’s too early to make a judgement here, but if revenue does materially fall in the next few quarterly updates, it’s a red flag to note.

Based on the analyst forecasts and other factors, I think BT shares are worth investors considering for 2025.

Should you invest £1,000 in Phoenix Group Holdings Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool 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 Phoenix Group Holdings Plc made the list?

See the 6 stocks

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Jon Smith has no position in any of the shares mentioned. The Motley Fool UK has recommended HSBC Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our best passive income stock ideas

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

More on Investing For Beginners

Affectionate Asian senior mother and daughter using smartphone together at home, smiling joyfully
Investing Articles

With Cash ISA changes coming, could now be the time to consider buying shares?

Changes to the Cash ISA could lead to greater investment in the stock market. This could be a good thing…

Read more »

Young black woman using a mobile phone in a transport facility
Investing Articles

3 FTSE 100 safe haven stocks to consider as trade wars bite

I'm confident in the long-term outlook for the FTSE index of stocks. But these blue chips may protect investors from…

Read more »

Investing Articles

2 cheap FTSE 100 and FTSE 250 shares to consider for an ISA before 5 April!

These FTSE 100 and FTSE 250 shares are on sale today! Here's why long-term Stocks and Shares ISA investors should…

Read more »

Investing Articles

How I’m building a new second income for 2035

Millions of us invest for a second income. Here are the steps Dr James Fox is taking in order to…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing For Beginners

Why FTSE 100 investors should pay attention to ‘Liberation Day’

Jon Smith explains why the upcoming tariff announcement from across the pond could have an impact on the FTSE 100,…

Read more »

Investing Articles

3 top FTSE 100 shares to consider for a new ISA

The FTSE 100 is packed with top-notch companies that can form the building blocks of a quality Stocks and Shares…

Read more »

Investing Articles

Is buying gold stocks the best way to capitalise on bullion’s bull run?

Forget about gold bars, coins, and funds for a moment. Here's why considering gold stocks could be the best option…

Read more »

Investing For Beginners

Want to invest in an ISA but scared of a stock market crash? Consider this

A stock market crash or dip can be a great time to buy FTSE 100 stocks at reduced prices. Harvey…

Read more »