BT shares jump 3% as JP Morgan forecasts dividend doubling and easing competition fears

BT Group shares rose nearly 3% following JP Morgan's positive outlook, highlighting expected 30% growth in free cash flow for fiscal 2027 and improved dividend coverage for the first time in a decade. The broker sees the worst competitive pressure from alternative network providers behind BT, with steady improvement in line losses. JP Morgan suggests BT could announce a new dividend policy linked to cash flow growth, potentially doubling dividends by 2030 while maintaining debt reduction. Despite recent gains, BT remains undervalued with a 15% free cash flow yield on 2030 estimates, supporting a bullish investment case.