BNP Paribas upgrades Dish TV to 'Buy'

BNP Paribas Securities has upgraded Dish TV to a ‘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 in a note to clients.

The broker has raised its target price for the stock to Rs 78 per share from Rs 64. “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.