JP Morgan Cazenove has reduced its rating on BT Group (LON:BT.A) to 'neutral' from 'overweight', given the long list of headwinds faced by the telecoms group which are likely to cap any upside potential.
The broker has also lowered its target price to 440 pence a share from 490 pence.
"Whilst we continue to view BT Group as a high quality business with market leading assets, it faces a large number of headwinds in the coming 12 to 18 months," analysts commented.
"We believe these headwinds are sufficiently large in number, complexity, duration and potential adverse impact to keep investor enthusiasm subdued for the foreseeable future."
At 1:21pm: (LON:BT.A) BT Group PLC share price was -0.45p at 386.15p