CLSA retains 'sell' on Bharti Infratel, target price Rs 200

CLSA has retained sell rating on Bharti Infratel and lowered target price to Rs 200 from Rs 230 after the company extended the long-stop date for the merger with Indus Towers to April 24. Vodafone Idea is 30% of Infratel’s and 50% of Indus’ tenancies and potential insolvency would likely terminate an Infratel merger with Indus, said CLSA. Despite a compelling 7% dividend yield, a key catalyst for the stock will be AGR relief, which is a must for Vodafone Idea’s survival, and in-turn, imperative to the Infratel-Indus merger, said CLSA. The stock ended up 1.1% at Rs 218.75 on Wednesday.