Buy Bharti Airtel, target Rs 505; upbeat on earnings recovery in FY20: Nomura

By Moneycontrol News

Moneycontrol News

The broking house Nomura has maintained buy call on Bharti Airtel but cut the target price to Rs 505 from Rs 625 per share.

There will be more pain in near term for the sector. The firm remain sanguine on earnings recovery in FY20.

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The brokerage believes that deleveraging via asset monetisation is the key catalysts and expects FY18F-20F EBITDA/NPAT CAGR at 11 percent/91 percent.

At 7.4X, FY20 EV/EBITDA, the stock is not cheap against its regional peers, it added.

The company and Gulf Bridge International (GBI) announced a strategic agreement to unlock the capacity on GBI’s India-Middle East-Europe submarine cable system.

Under the agreement, Airtel through its subsidiary, has acquired the rights to use significant capacity on Middle East-Europe leg of GBI’s cable system.

At 11:22 hrs Bharti Airtel was quoting at Rs 410.25, down Rs 3.60, or 0.87 percent on the BSE.

Posted by Rakesh Patil