CLSA downgrades RCom to 'sell' post Q4; BofA Merrill too bearish

Moneycontrol BureauBrokerage house CLSA has downgraded its rating on Reliance Communications to ‘sell’, citing huge debt and disappointing operational performance. It has slashed price target for the stock to Rs 43 from the previous target of Rs 79.“Reliance Comm’s 4QFY16 operating Ebitda, down 16 percent YoY, was belowour estimate due to a decline in voice revenues by 8 percent YoY and a jump in access costs,” said the CLSA note, adding, “We lower FY17-18(estimated) Ebitda by 3-4 percent to reflect the sub-par performance.”Brokerage house Bank of America Merrill Lynch too is bearish on the stock and has retained its ‘underperform’ rating on the stock, citing pressure on core revenues.Merrill too has trimmed its price target for the stock to Rs 43, from Rs 47 earlier.