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Global research firm Credit Suisse has maintained an underperform rating on telecom major Bharti Airtel with target price of Rs 320. The house expects continued earnings before interest, tax, depreciation and amortization (EBITDA) erosion for Airtel in India led by GST and competition.
Bharti Airtel is likely to monetise tower assets which is a high possibility, the firm said adding that the Africa operations has been in a bright spot and expects continued EBITDA improvement.
Credit Suisse believes that there could be spectrum purchase opportunities for Bharti Airtel which may not come in cheap. It is of the view that Q3FY18 will see the impact from drop in termination rate.
The research firm has cut earnings per share (EPS) estimates by 9 percent and 4 percent for FY18 anf FY19 respectively.
Speaking at the World Economic Forum's India Economic Summit, Bharti Airtel's Sunil Mittal said that competition in telecom is coming down while he stressed on the shift in technology from 3G to 4G and 5G which would lead to exponential not incremental changes.
At 15:08 hrs Bharti Airtel was quoting at Rs 379.45, down Rs 2.85, or 0.75 percent. It has touched an intraday high of Rs 381.55 and an intraday low of Rs 377.70.
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