Citi flags pension risk to BT dividend hopes ahead of scheme review

Citi warns BT Group’s pension scheme could consume billions more than investors expect, potentially further delaying progress on the dividend. Citi rates BT a sell and sets a £1.75 target price, citing pension-related overhang discussed during a teach-in with pensions expert John Ralfe. The note implies increased financial pressure and downside risk to shareholder returns.

Analysis

Citi warns BT Group’s pension scheme could consume billions more than investors expect, potentially further delaying progress on the dividend. Citi rates BT a sell and sets a £1.75 target price, citing pension-related overhang discussed during a teach-in with pensions expert John Ralfe. The note implies increased financial pressure and downside risk to shareholder returns.