Image source: BT Group plc
UK-listed telecoms shares have delivered big returns in 2025. It seems this sector has benefitted from a rotation into European value stocks. Can these shares continue to perform over the next 12 months? Let’s take a look at analysts’ share price forecasts for BT (LSE: BT.A), Vodafone (LSE: VOD), and Airtel Africa (LSE: AAF) to see what they’re predicting.
BT
Starting with BT, the average analyst price target here is 200p. That’s actually 4% below the current share price.
In other words, the consensus view is that there’s little scope for gains from here. Analysts do forecast a 4% dividend yield over the next 12 months though.
Personally, I agree that there’s not much potential for capital gains with BT. For a start, it’s had a huge run, climbing about 40% this year.
Secondly, the current price-to-earnings (P/E) ratio of 11.5 looks about right to me. Given that BT’s generating minimal growth and has a huge debt pile (a big risk), I can’t see the stock commanding a significantly higher valuation.
Now, it’s worth pointing out BT is talking about using AI to increase efficiency. This could create more potential.
For now though, I see it as fully valued. Therefore, I don’t view it as a Buy to consider today.
Airtel Africa
Zooming in on Airtel Africa, it makes BT look like a slouch. It’s up about 75% for the year.
It seems analysts believe the stock has got a bit ahead of itself, however. Currently, the consensus price target is 186p – 11% below today’s share price of 208p.
While a pullback here is a possibility, I like the look of this telecoms stock. That’s because it operates in growth markets and is generating attractive revenue and earnings growth at present.
This financial year (ending 31 March 2026), revenue is expected to come in at $5.8bn, up 18% year on year. There are not many telecoms businesses generating that kind of top-line growth.
Looking at the P/E ratio, the stock does look a little pricey on a multiple of 19. But with earnings forecast to grow rapidly in the years ahead, it should be able to grow into its valuation (the P/E ratio using next year’s earnings forecast is only 13).
Of course, African economies can be significantly more volatile than developed markets so this is a risk. Taking a long-term view, however, I think the stock is worth considering.
Vodafone
Finally, turning to Vodafone, the average price target here is 87p. That’s about 5% above the current share price.
Now, I’ve been quite bearish on Vodafone in recent years. But looking at the stock today, I’m a little less bearish than I was.
One thing that jumps out at me here is that next financial year (starting in April), analysts expect Vodafone’s earnings per share to jump 17% to €9.70. That’s a significant level of growth and it could generate some interest in the stock.
Another thing worth mentioning is that the stock has lagged other telecoms shares recently (it’s only up about 20% this year). So, it could have some catching up to do.
That said, the valuation does look pretty full today (the P/E ratio is 11.4.). And a large debt pile adds risk.
So, while the stock could be worth considering, I think there are better UK shares out there.
