Apr 04, 2013, 10.52 AM | Source: Moneycontrol.com
Goldman Sachs has upgraded Reliance Communication to neutral from sell rating with a target of Rs 65. The stock was quoting at Rs 64.55, up Rs 0.05, or 0.08 percent on the BSE.
The brokerage feels that the Anil Ambani's company will benefit by the Rs 1200 crore-deal with Reliance Jio.
"Apart from the already announced inter-city fiber sharing agreement, we see the possibility of agreements on towers, more fiber and spectrum leasing/sharing going forward," it said in a report.
Goldman Sachs has also increased Rel Comm's FY14E/FY15E earnings per share (EPS) by 10%/21% factoring in growth fromnew revenue opportunities due to possible deals with RIL and improving execution in the core Rel Comm business.
According to the firm, Anil Ambani's telecom business has seen stabilisation and improvement in its revenue market share to 8 percent under leadership of the new CEO since May 2012.