BT Share Price Analysis: Is BT Bullish Trend Slowing Down?

Summary:
• BT's share price has continuously outperformed the markets throughout the year, a trend that is likely to continue in the next few sessions.

BT’s share price has continuously outperformed the markets throughout the year. Today, with year-to-date data showing a 7 per cent gain and the FTSE 100 being down by 4 per cent for the same period, it is hard not to question if we will continue to see the BT share price continue to rise. 

To answer the BT share growth question, we have to start by looking at its financial standing. BT has seen its total revenues dwindle in the past year. However, the company has been able to implement cost-cutting measures, which have helped it to grow its profits by over 8 per cent in the same period. Nevertheless, despite the profit growth, the company’s debt of £22.8bn looks like a glaring problem, especially when BT has only £777m in cash and cash equivalents.

Other factors such as the current inflation, which currently stands at 9.1 per cent, the highest in over 40 years, will also play a part. Fortunately for BT, their strong existing infrastructure will insulate them from the rising cost of products. The company also has a high online presence with their broadband products. In addition, the world is moving to a hybrid working environment, where a huge chunk of the UK population has continued using BT for remote work. This has given the company a huge advantage in the markets to remain bullish.

The latest partnerships with companies such as Warner Brothers Discovery have also ensured BT’s continued customer outreach. Already with over 30 million customers worldwide, the company has continued to look for more avenues that are likely to attract new clients, hence a likelihood that the company will improve its revenue.

BT Share Price Prediction

Therefore, putting everything above together, my BT share price expectation is for a continued bullish trend in the next few trading sessions. Despite dropping by 7 per cent on Friday, there is a high likelihood that we will see the prices hit July’s price high of 196p in the next few trading sessions.

There is also a high likelihood that the prices will push past the 200p price level, and possibly hit the 250p within the next few weeks.

BT Daily Chart