- Summary:
- BT share price is up in today’s trading session, continuing a streak of a bullish trend that has seen its value rise by almost 10% in 2 weeks
BT share price is up in today’s trading session, continuing a streak of a bullish trend that has seen its value rise by almost 10 per cent in the past two weeks. The continued bullish trend comes amidst reports that its Openreach division was considering reducing its broadband prices to attract new customers.
The company has been impacted by inflation throughout the year, which has seen its capital expenditure shoot up. According to recent reports, BT is expected to see a bump of £200 million in its energy costs, with its expenditure jumping from £4.8 billion to £5 billion for the financial year, affecting its cash flow.
Early this month, the company’s Chief Executive, Philip Jansen, expressed concerns about the rising costs, indicating a willingness to implement cost-cutting measures, including laying off some of the company’s workers. As Jansen put it, the measures would see the company save £500million and be part of group-wide action aimed at cutting the costs by £3 billion before the end of the 2024-25 financial year, up from £2.5 billion.
BT Share Price Forecast
In today’s trading session, the BT share price is up by less than a percentage point, continuing a bullish trend that started two weeks ago. Today’s bullish trend also comes at a time when the UK inflation rate is 11 per cent, a record 41-year high, and expected to continue rising in the next few months.
As seen above, the company has suffered from the rising cost of living throughout the year, which has seen its expenditure shoot up by more than £200 million. Therefore, despite the bullish trend of the past two weeks, I expect the current bullish trend to reverse, and we might see the BT share price trading below the 100p price level before the end of the year. However, a move past 130p will invalidate my long-term bearish analysis.
BT Daily Chart
