Idea Cellular shares drop over 2% on Jefferies downgrade

NEW DELHI: Idea Cellular Ltd slipped over 2 per cent in morning trade on Wednesday after Jefferies downgraded the telecom major to 'underperform.'

At 10:40 a.m.; Idea Cellular recouped some of the losses and was trading 1.4 per cent lower at Rs 139.25. It had hit a low of Rs 138.10 and a high of Rs 141.25 in trade today.

According to Jefferies, the valuations for the telecom major looks stretched. It has however upped the price target from Rs 115 to Rs 120.

Jefferies believes that further upside is limited in the stock and any improvement in Bharti Airtel will mean money flow away from Idea Cellular.

Although the brokerage expects the realizations to improve but this will be gradual.