HDFC Securities raises Bharti Airtel target to Rs 460/share

MUMBAI: DFC Securities has downgraded its rating to ‘Hold’ on Bharti Airtel after the recent run-up in the stock. However, the brokerage has increased its price target to Rs 460 per share.

“Bharti’s Q1FY12 revenue and EBITDA were in line with our estimate, however PAT was below expectation due to Rs 1.75 billion forex loss and higher tax outgo.

Post the recent hike in tariffs; we are raising our revenue and EBITDA estimate for FY12/13 by ~3-5% as we alter our RPM/minutes assumption. Accordingly we raise our target price to Rs 460 (from Rs 410) at 7.5x FY13E EV/EBITDA, however downgrade our rating to Hold from Buy post the recent run-up in price,” the report said.