BT Group shares are up 8.90 pence as the telecoms provider get a boost from fundamentals.
The new Chief Executive, in his full year statement today predicted a rise in key fundamentals for this coming year.
Meanwhile, Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers offered this:
"Net debt has been reduced, whilst improved cashflow and a more sustainable cost base is allowing the dividend to be increased (+6pc)." he said putting the company on 'strong hold'.
"Going forward, extending the group's broadband offering is seen as central. Growth in TV services is being targeted, while BT has today announced steps to branch into the provision of online gaming services in the UK. Furthermore, management is to continue developing its troubled Global Services division, targeting Asian corporates in particular – a move which could continue to test investor resolve going forward."
"In all, many hurdles remain – the group's staff pension scheme remains something of a millstone around the group's neck, whilst a strategy of cutting costs whilst improving customer service is always a tricky feat to achieve. Nonetheless, the new Chief Executive has made a determined start, with key financial guidance today being raised and the dividend payment proving a key support. For now, market consensus opinion denotes a strong hold, although today's results could provide room for something more optimistic."
Indeed, Collins Stewart, a wealth management advisory firm, believe that there is room for optimism as the 'underlying fundamentals are showing progression'.
Analyst, Morten Singleton rates the company 'buy' with a target price of 182p.
"Shares are oversold and worries are principally down to interference from the Pensions Regulator" he said.
BT Group shares were up 7 pct in early trading at 130.60 pence.