AJ Bell’s September 2026 list of the most-bought stocks contained an odd item. At the top was BT Group, the historic, state-born telecom behemoth that most people associate with green phone boxes and broadband outages. Not just ahead of Rolls-Royce or Legal & General. Ahead of Nvidia. BT shares were being purchased by British retail investors at four times the rate of the American chipmaker and three times the rate of the first two. That kind of attention is worthwhile for a company that was dismissed as a slow-moving utility for years.
A portion of the story is revealed by the share price. At some point this year, BT reached a low of about 105p, then rose to a high of 234p before retreating. It’s a significant run. The stock had dropped about 17% from its May peak by September, and it was currently trading in the £2 range, which was obviously a desirable entry point for many retail buyers. It makes sense in a familiar way. Some investors perceive a discount when a rising stock declines. Depending on what lies beneath it, it may or may not be authentic.
Perhaps more intriguing than it has been in years is what lies beneath BT at the moment. In the midst of a nationwide fiber rollout, the company is developing the kind of broadband infrastructure that distinguishes it from the BT of the dial-up era that many people recall.
Last month, Goldman Sachs set a 12-month price target of 330p for the stock, which is about a 60% upside call based mostly on fiber monetization. On retail investment forums, that kind of analyst note is noteworthy, and it might have played a role in the spike in purchases that appeared in September’s platform data. The growth story is clearer than it has been in a long time, the forward price-to-earnings ratio is slightly over 10, and the dividend yield is currently at about 4% with upward projections.
That momentum has been increased by the corporate actions. In order to expand its broadband footprint and add about 2.5 million new customers, BT recently announced the acquisition of TalkTalk out of administration for about £400 million. In a separate announcement, BT and Verizon announced a 50:50 joint venture that would combine their global enterprise operations and generate approximately $4 billion in revenue annually. It has been, to put it mildly, a long time coming for BT to focus on the UK market and tidy up its international exposure with the Verizon deal. The Indian conglomerate Bharti Enterprises still owns 24.5% of the company, giving smaller buyers some assurance by acting as a reliable institutional anchor.
Since there are actual risks, it is important to be truthful about them. About £20 billion is BT’s net debt, which is more than the company’s total market capitalization. It’s not a footnote. It’s a structural reality that limits adaptability and increases the expense of any operational error. As providers like CityFibre and Hyperoptic compete on price and service in the broadband market that BT is attempting to modernize, the company is also losing clients from its legacy base. Although the fiber rollout is truly important, competitors are also developing, and the long-term economics of that competitive environment are still unknown.
Observing the accumulation of retail purchases gives the impression that this is partially about narrative and partially about valuation. British investors grew up with the name BT. Millions of common people supported it when it was privatized in 1984, one of the pivotal moments of the Thatcher era’s share-owning revolution. Even after thirty years, the brand’s emotional familiarity probably counts for something. This time, however, the interest appears to be more grounded than sentimental. The pullback from May’s peak offered buyers a better entry than they would have had six months ago, and the fiber story and dividend are real. It remains to be seen if the Goldman target of 330p turns out to be accurate. It’s always the case.
