BT Shares Cut to Underperform at Exane BNP Paribas on Industry Headwinds

BT Group (LON: BT.A) has been cut to Underperform from Neutral at Exane BNP Paribas, with analyst Joshua Mills setting a 150p price target on the stock. 

The broker said it had adjusted its telecom operator ratings, noting that mergers will drive share outperformance in the near-term and suggesting BT may struggle to keep pace with sector peers.

The downgrade comes during a volatile period for the stock. BT shares have risen more than 27% so far in 2025, but the rally has faded in recent weeks, with the stock down nearly 12% over the past month. It is trading at 184.60p, as of 09:30 am.

Earlier this week, New Street Research also lowered its stance on BT, cutting the shares to Neutral from Buy and trimming its price target to 225p from 265p. 

The brokerage pointed to the challenges facing the UK broadband market, which is shrinking for the first time. 

According to New Street, high penetration levels combined with the rise of Fixed Wireless Access, satellite services, mobile tethering, and a weaker economic backdrop make the trend difficult to change in the future.

The pressure on the traditional physical broadband market compounds long-standing concerns about BT’s ability to balance its heavy investment in fibre rollout with competitive pricing pressures.