BNP Paribas upgrades Dish TV to 'Buy'

MUMBAI: BNP Paribas Securities has upgraded Dish TV to buy from hold citing some good moves by the management and the significant stock price underperformance as the key reasons.

""Dish TV has taken two price hikes over the last one year and we see this as a positive move for the

company. We see ARPU increase as the key driver for the stock,"" said BNP's analyst Kunal Vora in a note to clients.

The broker has raised its target price for the stock to Rs78 per share from Rs64.

""We expect Dish TV to report subscriber, revenue and EBITDA growth of 14% and 19% and 29%

over FY12-15 driven by mandatory digitization, tariff increase and economies of scale,"" the BNP analyst said. ""We believe churn level will decline and ARPU will increase with digitization. We like Dish TV's shifting focus towards subscription revenue over subscriber numbers,"" he said.