Investors Bullish on BT Shares with New CEO

French investor Patrick Drahi is set to sell his 24.5 percent stake in BT Group, three years after his initial investment, incurring losses nearing £1 billion. This decision comes as Drahi's Altice group grapples with significant debt issues. Despite Drahi's exit, BT shares have surged 26 percent since Allison Kirkby took over as CEO in February, with 15 analysts now rating the stock as a ‘buy’, according to Reuters. Market analysts view the recent investment from Bharti Enterprises, led by Sunil Mittal, as a positive sign for BT's future. Susannah Streeter, head of money and markets at Hargreaves Lansdown, described Mittal’s involvement as a “confidence-boosting move,” indicating untapped long-term value within the company. Karen Egan, a senior telecoms analyst, echoed this sentiment, stating that Mittal’s backing validates BT’s strategic direction. BT’s individual investors, numbering around 614,000, have faced a challenging period, with share values down over 70 percent since late 2015. Kirkby’s turnaround strategy includes a significant cost-cutting initiative, which will see approximately half of the 130,000 workforce reduced, with around 10,000 jobs replaced by artificial intelligence. Kirkby welcomed the investment from Bharti, emphasizing it as a strong endorsement of BT’s future. As BT prepares for this transition, Mittal has encouraged the company to adopt bolder strategies. Drahi's stake has plummeted from £4.17 billion to £3.18 billion since his investment in July 2021, reflecting the turbulent market conditions. Following these developments, BT shares experienced an 8.4 percent increase yesterday.