Nomura cuts Bharti Infratel target price amid Vodafone-Idea merger talks
Nomura said the risk-reward for the stock remains balanced and hence, its rating remains at 'neutral'.
By ET Bureau | Updated:
Mumbai: Nomura has reduced target price on Bharti Infratel to Rs 330 from Rs 395 as Vodafone-Idea potential merger is taking a toll on the stock.
"The potential merger of two of Bharti Infratel’s three incumbent tenants entails a medium-term earnings risk in the form of tenancy loss and potential slowdown in network capex," said Nomura.
Nomura said the risk-reward for the stock remains balanced and hence, its rating remains at 'neutral'.
The brokerage has raised its FY17 and FY18 earnings per share forecast by 5% and 3% respectively but said its FY19 EPS forecast is largely unchanged as it has moderated its rental income growth outlook.
Shares of Bharti Infratel were down 0.1% at Rs 308 in late afternoon trade on the BSE. Nomura's target price implies an upside of 7% from current levels.
"The potential merger of two of Bharti Infratel’s three incumbent tenants entails a medium-term earnings risk in the form of tenancy loss and potential slowdown in network capex," said Nomura.
Nomura said the risk-reward for the stock remains balanced and hence, its rating remains at 'neutral'.
The brokerage has raised its FY17 and FY18 earnings per share forecast by 5% and 3% respectively but said its FY19 EPS forecast is largely unchanged as it has moderated its rental income growth outlook.
Shares of Bharti Infratel were down 0.1% at Rs 308 in late afternoon trade on the BSE. Nomura's target price implies an upside of 7% from current levels.
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