BNP raises Bharti Airtel to 'buy', cuts Reliance Comm

Fri Jan 11, 2013 1:44pm IST

A man stands next to a shop painted with an advertisement for Bharti Airtel on the outskirts of Jammu December 11, 2012. REUTERS/Mukesh Gupta/Files

A man stands next to a shop painted with an advertisement for Bharti Airtel on the outskirts of Jammu December 11, 2012.

Credit: Reuters/Mukesh Gupta/Files

Related Topics

Stocks

   

Reuters Market Eye - BNP Paribas upgraded Bharti Airtel Ltd (BRTI.NS) to "buy" from "hold", it said in a note on Thursday.

Bharti is well positioned to benefit from an improving outlook for the sector, including a consolidating industry, the return of pricing power, and an expected "strong" pick up in wireless data use, says BNP.

BNP also retains its "buy" rating on Idea Cellular Ltd (IDEA.NS), calling the stock its "top pick" in the sector as the company is a "pure play" GSM mobile operator.

However, BNP cut Reliance Communications Ltd (RLCM.NS) to "reduce" from "hold" after noting shares had rallied 33.5 percent in the past three months.

Reliance Communications would have to pay for excess spectrum while suffering from "high" debt and lagging operating performance, BNP adds.

Bharti Airtel shares are down 0.8 percent as of 11:50 a.m. Idea is up 0.1 percent, while Reliance Communications is flat.

(Reporting by Devidutta Tripathy and Manoj Dharra)

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

Earnings Season

REUTERS SHOWCASE

Monsoon Revives

Monsoon Revives

Monsoon revival keeps rain above average   Full Article 

Tackling Food Prices

Tackling Food Prices

India to free up extra 10 million tonne wheat in open market  Full Article 

Just Not Enough

Just Not Enough

Amazon's smartphone fails to kindle a "Fire" among reviewers.  Full Article 

Struggling Economies

Struggling Economies

Asian economies to struggle on weak export demand - Reuters poll  Full Article 

Mining Roadblock

Mining Roadblock

Coal India's plans for 20 mines hit by land, environment delays  Full Article 

Power Jolt

Power Jolt

UAE's TAQA pulls out of India power plant deal with Jaiprakash  Full Article 

Factory Sector

Factory Sector

China July HSBC flash PMI at 18-month high of 52.0   Full Article 

Currency Reserves

Currency Reserves

Sri Lankan, Indian central banks agree scope for government debt buys.  Full Article 

Reuters India Mobile

Reuters India Mobile

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