Will BT’s Share Price Keep Rising? Expert Predictions for 2025

BT Share Price: A Strong Comeback in 2024

BT Group plc (LSE: BT.A), one of the UK’s leading telecommunications companies, has seen a significant rally in its share price in recent months.

As of February 2025, BT’s stock has surged over 40% since Allison Kirkby took over as CEO on February 1, 2024.

This turnaround comes after years of sluggish performance, marked by concerns over declining revenues, competition from rivals like Virgin Media and Vodafone, and heavy infrastructure investment in 5G and full-fibre broadband.

The recent rally in BT’s share price has been fueled by several key factors:

• Leadership Change: Investors have responded positively to Kirkby’s cost-cutting measures and strategic repositioning of BT.
• Operational Restructuring: BT has undertaken workforce reductions and sold off non-core assets to focus on its core telecom operations.
• Institutional Interest: Major investors like Morgan Stanley have increased their stake in BT, signaling confidence in the company’s direction.

But the key question for investors is: Will BT’s share price continue its upward trajectory throughout 2025? Let’s analyze expert predictions, financial forecasts, and market trends.

Factors That Could Drive BT’s Share Price Higher in 2025

1. Stronger Financial Performance and Cost-Cutting Initiatives

BT’s recent restructuring efforts have significantly reduced operational costs. Kirkby has outlined plans to further streamline the company, including cutting thousands of jobs and improving efficiency in broadband rollout. Analysts believe these measures could enhance profitability and investor confidence.

2. Expansion of Fibre Broadband and 5G Infrastructure

BT is heavily investing in the UK’s digital infrastructure, particularly in rolling out full-fibre broadband through Openreach and expanding its 5G network. These developments are expected to provide long-term revenue growth, making BT more competitive in the market.

3. Institutional Investors Increasing Their Stake

Morgan Stanley’s recent decision to increase its stake in BT to over 5% is a bullish signal. If more institutional investors follow suit, demand for BT shares could rise, pushing the stock price higher.

4. Improved Dividend Prospects

BT has a history of paying dividends, and with its financial position improving, experts predict a possible increase in dividend payouts in 2025. This would make BT shares more attractive to income-focused investors.

Risks That Could Limit BT’s Share Price Growth

1. Competition from Rivals

The UK telecom sector is highly competitive, with Vodafone, Virgin Media O2, and alternative broadband providers aggressively expanding. If BT fails to differentiate itself, market share losses could impact its financial performance.

2. Regulatory Challenges

The UK government and Ofcom are closely monitoring broadband pricing and competition in the telecom sector. Any adverse regulatory decisions could impact BT’s ability to increase prices or expand its network profitably.

3. Economic Conditions and Interest Rates

The UK economy is facing inflationary pressures, which could affect consumer spending and business investments. If economic conditions worsen, BT’s revenue growth could be impacted, leading to slower share price gains.

Expert Predictions for BT’s Share Price in 2025

Bullish Outlook

• Investment banks like JP Morgan and Barclays have raised their target price for BT, citing strong cost reductions and fibre rollout progress.
• Some analysts believe BT’s stock could rise another 20-30% in 2025 if operational efficiencies translate into higher profit margins.

Cautious Outlook

• Some experts warn that competition and regulatory risks could slow BT’s growth, leading to a flat or moderate increase in share price rather than a rapid rise.
• Macroeconomic factors like interest rate hikes could impact investor appetite for telecom stocks.

Conclusion: Is BT a Good Investment for 2025?

BT’s recent rally has been driven by strong leadership, cost-cutting measures, and growing institutional investor confidence. While challenges remain, including competition and regulatory hurdles, many analysts believe BT’s share price has further room to grow in 2025.

For investors, BT presents an interesting opportunity, especially for those looking for stable, long-term growth and potential dividend income.

However, keeping an eye on market trends, earnings reports, and regulatory changes will be crucial in assessing BT’s future stock performance.