Underperform Reliance Communications, target Rs 42: BofA-ML

BofA-ML maintains an underperform rating on Reliance Communications with a 12-month target price of Rs 42. The global brokerage firm expects continued market share loss at RCOM/Aircel if merger happens.

BofA-ML does not expect combined entity to make any incremental investments in 4G. The consolidation is likely to continue and incumbents like Idea, Bharti will become stronger.