Goldman Sachs upgrades RCOM to neutral

Goldman Sachs has upgraded Rcom to ‘Neutral’ from ‘Sell’ with a target price of Rs 65 as it believes the company will benefit in the coming months from new growth opportunities from RIL’s telco business as it comes closer to launching its 4G services.

It sees the possibility of agreements on towers, more fiber and spectrum leasing/sharing going forward. “We factor in Rs 6/share value from the recent inter-city fiber optic network sharing deal with RIL. We also model a Rs3/share additional value from potential further deals from RIL on assets, intracity fiber etc as we believe RIL will likely depend on RCom’s towers for its 4G service rollout timeline of Dec-13,” Goldman Sachs said in a note.