Nomura has maintained its buy rating on BT, saying that the telecom titan's trading momentum is building nicely for 2012.

BT reported this morning that revenue totalled £4,774m in the third quarter, down 5% on last year, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 3% to £1,524m. Nomura notes that revenue was 0.2% below consensus, however, with strong cost reduction in Retail and operational momentum in Openreach, EBITDA surpassed forecasts by 1.6%. Earnings per share and free cash flow were 5% ahead of consensus, the broker added.

BT now expects to achieve its EBITDA target of above £6,000m this year, rather than in 2013.

"With consensus already sitting at £6.01bn for FY 12, we expect marginal upgrades to at least reflect the robust trading performance," the broker said.

Nomura kept its target price of 285p.

Shares were up 3.16% at 212.4p in morning trade.

BC

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