Emkay Research has maintained its buy rating on Idea Cellular with a target price of Rs 156 in its June 25, 2008 research report. "We view Idea-Spice merger to be very synergistic which would enhance Idea’s presence in the industry and would accelerate the subscriber additions going forward. We are leaving our estimates unchanged for now, and would be reviewing them post detailed clarity on the whole transaction."

"Our analysis however indicates the deal to be valuation neutral for Idea. We continue to remain bullish on Idea Cellular and maintain BUY rating with a target price of Rs 156. At CMP of Rs 102, Idea trades at EV/EBIDTA of 9.7x and 7.3x for FY09E and FY10E respectively," says Emkay's research report.

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