Bharti Airtel gains on tariff hike hopes

Mon Nov 19, 2012 2:53pm IST

An employee checks a customers' feedback book next to a Bharti Airtel logo inside its shop in Kolkata May 2, 2012. REUTERS/Rupak De Chowdhuri/Files

An employee checks a customers' feedback book next to a Bharti Airtel logo inside its shop in Kolkata May 2, 2012.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

Stocks

   
Coal Mining In The Punjab

Coal Mining In The Punjab

In Choa Saidan Shah miners dig coal with crude pick axes and load it onto donkeys to be transported to the surface earning a team of 4 workers around $10 to be split between them.  Slideshow 

Reuters Market Eye - Shares in Bharti Airtel(BRTI.NS) rise 2.3 percent, heading for their fifth consecutive session of gains, as more brokerages upgrade the stock after last week's auction of 2G spectrum fetched lower prices than the government had targeted.

Bharti shares surged 9.3 percent last week, the biggest weekly gain since late September.

Credit Suisse upgraded Bharti to 'outperform' from 'underperform', and raised its target price to 355 rupees from 225 rupees, citing greater clarity on the regulatory front and reduced competitiveness in the domestic sector.

The investment banks add operators could also be testing markets for tariff hikes by reducing discounts.

"While the recent rally in stocks has been led by easing regulatory concerns, we believe the next leg will be driven by tariff increases," Credit Suisse said in a note dated on Monday.

Goldman Sachs upgraded the stock as well, to 'buy' from 'neutral', also citing reduced regulatory risk and potential for tariff hikes, according to a note dated on Friday.

"We see room for potential tariff hikes in coming months as operators focus on reducing losses and pass the burden of higher spectrum on to consumers," Goldman wrote.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

HCL Tech Results

HCL Tech Results

Q4 dollar revenue disappoints investors, shares fall  Full Article 

Fed Policy

Fed Policy

Fed presses forward with bond buying, cites uptick in inflation.  Full Article 

Q2 Profit Slips

Q2 Profit Slips

Samsung sees tough second half  Full Article 

Chinese Economy

Chinese Economy

China should set lower 2015 GDP growth target of 6.5-7 percent - IMF  Full Article 

Default Imminent

Default Imminent

Argentina fails to reach debt agreement   Full Article 

Economy Reboots

Economy Reboots

U.S. economy back on track with strong second-quarter rebound  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage