The lengthy slide within the BT Group (LSE: BT.A) share price is likely to be over. At the least, we’ve seen a pleasant achieve because the telecoms large informed us in Could that it had “handed peak capex on our full fibre broadband rollout and achieved our £3 billion price and repair transformation programme a 12 months forward of schedule“.

The corporate, the board stated, had “reached the inflection level on our long-term technique“.

What subsequent?

How a lot additional may BT shares go by the top of the 12 months?

Nicely, firstly, let me clarify two issues that I don’t use as a foundation for an funding resolution. One is short-term expectations, and the opposite is analyst price targets. At the least, not on their very own.

However I do assume I can use them to gauge sentiment. And to assist me get a really feel for a way latest occasions may flip into longer-term tendencies.

It relies upon who we ask, however wanting round I see a mean price goal of 199p for the following 12 months. There’s a large unfold, although, with a low of 110p and a excessive of 290p. Speak about hedging your bets!

Worth rise

With the BT share price at 150p on the time of writing, that common goal would imply a 33% rise in 12 months. However can that be sensible?

It’s perhaps value noting that BT shares have been up round that stage just a few occasions because the 2020 inventory market crash. So buyers didn’t appear fazed by greater costs, and that was even earlier than the strategic “inflection level“.

The ahead price-to-earnings ratio (P/E) is about 10.6. So the goal implies an increase to 14, near the long-term FTSE 100 common.

BT’s massive debt would play havoc with this, if we adjusted for it. However historical past exhibits that BT shareholders appear pleased with excessive debt ranges, so long as they hold getting their dividends.

Dividend yield

I’d say the 5.3% on the playing cards for this 12 months seems to be much less dangerous than it’s been for a very long time, after that final set of outcomes. A brand new share price of 199p would drop the yield to round 4%. That’s about common for the Footsie, however may nonetheless look good for a inventory with additional development potential.

Forecasts forward so far as 2027 would see the P/E dropping a bit of to 13, with earnings per share (EPS) predicted to rise modestly after 2025. Sluggish EPS development might be a handicap.

So, do I just like the prospects for BT properly sufficient now to purchase some shares? I’m nonetheless torn, primarily as a result of I’ve been it for the dividend. Targets like this now make me assume there might be some good price positive aspects too.

Nonetheless don’t like debt

The principle downside for me is internet debt, which was up at an an eye-watering £19.5bn at FY outcomes time. In robust occasions, that might trigger ache. And any risk to the dividend may imply a brand new share price slide.

However I do assume BT shares are value contemplating at at this time’s price.