Shares digital

BT (BT.A) 232p

Telecoms giant BT has missed market forecasts for its Q3 earnings after its wholesale division was hit by a drop in premium-rate service revenue. (Read the full story: www.sharesmagazine.com/node/3203)

Shares says: The dividend yield should provide support at these levels despite the disappointing trading statement. HOLD

FT says: Competition in the broadband market led BT to miss its quarterly revenue targets, as the telecoms group unveiled mixed results that pushed the shares down almost 10%.

Telegraph says: The competition in the broadband market helped push back revenues by £151 million, to £890 million. BT also warned that this could continue to take its toll on revenues for ‘a few more quarters’.

The City says: BT shares have been in free fall since the end of October, falling nearly 30%, twice that of the sector and the FTSE All Share. We’re wary of trying to catch a falling knife, but we think the decline looks overdone.