BT Shares Forecast: Transform £10,000 with High Yields in 12 Months

Bassyonni

Published: February 4, 2026 4:20 AM ET

BT Shares Forecast: Transform £10,000 with High Yields in 12 Months

BT Group, listed on the London Stock Exchange as BT.A, has recently witnessed significant fluctuations in its share performance. Over the past 12 months, the company’s shares have surged by 33%, and in two years, they have increased by 70%. Despite this impressive growth, some analysts remain cautious about the company’s future.

BT’s Financial Overview

In full-year 2025, BT reported a profit before tax of £1.3 billion, representing a 12% increase. However, revenue declined by 2%, falling to £20.4 billion. This decline is attributed to fierce competition and weaker sales of handsets, raising concerns among investors.

Openreach’s Performance

Openreach, a subsidiary of BT, added 1.1 million net fibre to the premises (FTTP) customers in the first half of full-year 2026.
Total connected premises through Openreach now stand at 7.6 million.
Despite this growth, Openreach lost 242,000 broadband lines in the second quarter, signaling emerging challenges in the market.

Competitive Landscape

The telecommunications market remains fiercely competitive. BT faces pressure from revitalized players like Vodafone and smaller alternative network providers. This competition, coupled with BT’s substantial net debt of over £20 billion, raises questions about its long-term viability.

Shareholder Insights

Indian billionaire Sunil Bharti Mittal, BT’s largest shareholder, now holds a seat on the board and is reportedly concerned about the company’s strategic direction. Chief Executive Allison Kirkby has been credited with steering the company through a turnaround since her appointment two years ago.

Investment Outlook

Currently, BT’s shares are valued with a price-to-earnings ratio of 10.1. The dividend yield is around 4.2%, reflecting a decline as share prices have appreciated. Analysts forecast modest growth, projecting a median target price of 202.7 pence over the next 12 months. This represents a potential increase of approximately 5% from recent trading levels.

Projected Returns

If projections hold, an investment of £10,000 could yield a return of approximately £10,930 within a year, resulting in a total expected return of 9.3%. However, the uncertainties surrounding BT’s strategic identity and competitive pressures caution investors.

In conclusion, while BT shares exhibit potential for growth, numerous factors, including sector competition and internal challenges, contribute to a cautious investment outlook. Many investors may look elsewhere for more promising income and growth opportunities within the FTSE 100.