Morgan Stanley downgrades RComm, Idea Cellular
Morgan Stanley has downgraded its view on India's telecom sector to "in-line" from "attractive", citing increased regulatory risks tied to the spectrum auction, and "relatively weaker" 3G outlook.
Morgan Stanley has downgraded its view on India's telecom sector to "in-line" from "attractive", citing increased regulatory risks tied to the spectrum auction, and "relatively weaker" 3G outlook.
The brokerage has cut its rating on
Reliance Communications to "underweight" from "equalweight", and slashed its target price to Rs 51 from Rs 109, citing a weaker balance sheet and saying the company faced the highest regulatory risk.
Morgan Stanley has also cut Idea Cellular to "equalweight" from "overweight", while reducing its target price to Rs 87 from Rs 134, citing its smaller balance sheet and a 32% outperformance in the last twelve months.
Bharti Airtel remains the only "overweight"-rated stock in Morgan Stanley's telecoms coverage, with a target price of Rs 366, down from Rs 488 earlier.
Shares in Bharti Airtel were down 0.5% to Rs 301, Idea Cellular down 0.9% to Rs 78.50, while Reliance Communications fell 1.3% to Rs 66.55.Also read: Morgan Stanley upgrades Reliance Industries Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
