UPDATE: Bank of America Downgrades BT Group plc to Neutral on Cost and Revenue Headwinds

Bank of America downgraded BT Group plc BT from Buy to Neutral and lowers the price objective to $41.87. Bank of America noted, "BT has been a turnaround situation, with management - successfully so far - turning around free cashflow in its Global Services division and defending its traditional revenues against tough competition. The company has aggressively reduced headcount, however cost cutting will become harder to achieve. With revenues not reaching an inflection point yet, management may now prioratise projects to accelerate revenue growth (higher capex or opex), potentially putting pressure on FCF generation." BT Group plc closed at $39.88 on Monday.