The BT (LON: BT) share price was in a tight range on Tuesday as investors focus remained on the ongoing UK energy crisis. Investors are also watching an ongoing class action lawsuit that started on Tuesday.
BT class action lawsuit
BT could soon get into more trouble after the Competition Appeal Tribunal ruled that a class action lawsuit should move to a full trial. If the company loses the lawsuit, it could be forced to pay about 500 pounds to more than 2.3 million customers.
The lawsuit was filed shortly after Ofcom, the communications regulator, found that the company had been short-changing its landline customers. In response, the company agreed to cut the bills of the affected customers. But it did not compensate them, which is the basis for the suit.
The class action lawsuit will distract BT’s CEO and other senior management at an important time. For one, the company is implementing a plan to invest 12 billion pounds to rollout its full-fibre broadband service to more than 26 million customers.
At the same time, the company is in advanced talks with DAZN. The talks involves its BT Sports division, which the company wants to exit. The total value of the deal has not been made public although it could be worth more than 1.5 billion pounds.
The deal is complicated because BT has a cross-licensing deal with Sky, the company owned by Comcast. The company will need to approve of any deal that BT makes.
Meanwhile, investors are looking for any move by Patrick Drahi, the company’s biggest shareholder. Drahi, a French billionaire who owns Altice, bought a 12% stake in the company a few months ago. He is yet to declare his intentions with BT but there are speculations that he could seek to acquire or break up the company.
BT share price forecast
The four-hour chart shows that the BT share price has been in a tight range recently. The stock is trading at 162p, which is about 6.2% above the lowest level this month. It has managed moving above the descending trendline shown in blue while the 25-day and 50-day moving averages have made a bullish crossover.
Therefore, the stock will likely maintain the bullish trend as bulls target the next key resistance level at 170p. On the flip side, a drop below the key support at 155p will invalidate the bullish view.
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