Moneycontrol
Last Updated : Jan 11, 2019 10:50 AM IST | Source: Moneycontrol.com

Bharti Airtel dips 2% after BofAML cuts price target on likely earnings downgrade

BofAML believes consensus not fully reflecting impact of IUC (interconnect charges) payments being zero from January 2020

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Bharti Airtel shares declined more than 2 percent in morning on Friday after global investment firm Bank of America Merrill Lynch downgraded the stock to neutral as it sees further risks to consensus downgrade in earnings.

The research house also slashed price target to Rs 350 apiece as it cut FY19-21 EBITDA estimates by 2-10 percent & FY21 EPS by 65 percent for Airtel.

Company's FY20/21 return on equity is expected to be low at -1 / 1 percent, it said.

The broker believes consensus not fully reflecting impact of IUC (interconnect charges) payments being zero from January 2020 and said it does not expect headline tariff hikes till Jio reaches No. 1 position by market share.

In the last one year, the stock plunged 35 percent. At 10:25 hours IST, it was quoting at Rs 331.10, down Rs 6.15, or 1.82 percent on the BSE.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
First Published on Jan 11, 2019 10:50 am
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