Bharti Airtel shares fall after gaining over 3%; JP Morgan maintains 'overweight' for 19% potential gains

Shares of Bharti Airtel after trading in the positive note in early trade moved lower tracking broader market losses. At the day's high, the stock gained up to 3.4 per cent at the day's high, while last traded with a cut of around 1 per cent.

The gains in the telecom major were fuelled after Elon Musk's SpaceX inked a deal with Bharti Airtel and Reliance.

The company has plans to offer satellite communications services in India -with Internet penetration aimed to reach remote areas of the country. The new tie-up with Starlink will complement the current offerings by Bharti Airtel.

Add Zee Business as a Preferred Source

Zee Business research inputs added that the position of JioSpaceFiber as well as OneWeb will need to be assessed.

Global brokerages on Bharti Airtel

Citi maintains buy on Airtel with the target at Rs 1,920- nearly 16 per cent gains. The brokerage on the buy suggested 3 pointers:

Announced agreement with SpaceX to offer Starlink’s satellite communication services in India. Further it cited 3 key +ves
1) Enable Bharti to offer telecom services to a section of population residing in remote parts of India that is currently underserved
2) Also enable Bharti to expand B2B connectivity & related offerings
3) View service as complementary to Bharti’s existing offerings

Similarly another brokerage JP Morgan is overweight on the stock and has given a target of Rs 1,970- implying healthy gains of 19 per cent from the previous close.
Starlink is yet to receive regulatory approvals
Believe pricing will be a key, added the brokerage.

Bharti Airtel share price performance

In the last one year, the stock has gained 38 per cent, while in the last 3 years it has climbed 137 per cent-generating multibagger returns for its investors.