Telecom Stocks of the Moment: Global brokerage UBS picks Bharti Airtel, Vodafone Idea, and Indus Towers; says this stock can go 62% up
Global brokerage firm UBS seems quite bullish on the telecom sector in a recently released report. It has picked 3 stocks from the sector. The brokerage has double upgraded Vodafone with a 'buy' call. It has given an upside of 38% the telecom stock. For Bhatri Airtel, it has given a 'neutral' rating, while the target has been increased by about 10%. Apart from this, it has also given a 'neutral' rating to Indus Towers, and has raised the share target price by about 62%.
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Vodafone Share Price Target
Vodafone Idea shares closed at Rs 15.11 each on BSE this week. The stock recorded a jump of 14 per cent. UNBS said that relief in government dues will support a 70-80% upside in the stock price. The Supreme Court is also expected to provide relief in AGR dues.
Vodafone Share Price Target
Apart from this, the company can increase the tariff by 15%-20% in the next 12-14 months from where a lot of support is expected. There is also a possibility that the government may convert the moratorium amount into equity in the company. The government is pursuing a policy of retaining at least 3 players in the telecom sector.
Many positive factors for Vodafone Idea
Recently, Vodafone Idea brought the largest FPO in history of Rs 18,000 crore, which has received a tremendous response. The company is also quite aggressive regarding fund raising. The company is preparing to raise Rs 25,000 crore from debt in the next few months.
Many positive factors for Vodafone Idea
In the upcoming time, 5G will also be rolled out, which will provide benefits. Talking about the valuation of the stock, it is available at FY26 EV/EBITDA 11x compared to Bharti Airtel and Jio. This is a comfortable valuation.
Airtel Share Price Target
UBS has given a 'neutral' rating on Bharti Airtel. The target price has been upgraded from Rs 1310 to Rs 1430.
Airtel Share Price Target
This week, this shares closed at Rs 1,388.60 each with a rise of three and a quarter per cent. In intraday, it made a new life high of Rs 1,398 on Friday. This stock has jumped by 23 per cent in the last three months.
Indus Towers Share Price Target
UBS has given a 'neutral' rating for Indus Towers but has upgraded the target price by 62% from Rs 220 to Rs 355.
Indus Towers Share Price Target
This week, this share closed at Rs 347. The stock has given a return of 43% in the last three months.