Morgan Stanley starts Bharti Infratel at 'overweight'

Morgan Stanley initiates coverage on Bharti Infratel Ltd with an 'overweight' rating and a target price of Rs 255.

The investment bank says the mobile tower operator will benefit from increased wireless data traffic growth, as well as a healthy balance sheet, especially as operators extend 3G services. Bharti Infratel to be included in FTSE Global Equity Indices
Bharti Infratel also has positive free cash flow and balance sheets, as well as "attractive valuations".
Bharti Infratel shares up 0.7 percent at Rs 206.73. That was down 10.3 percent from its IPO price of Rs 220 for funds and wealthy investors, who received the majority of the allocation. Bharti Infratel sold shares to retail investors at Rs 210 and to cornerstone investors at Rs 230.