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On Thursday, Bernstein analysts affirmed their confidence in Bharti Airtel (NSE:BRTI) Ltd (BHARTI:IN), a leading player in the telecom sector, by raising the price target on the company’s shares. The new price target is set at INR2,020.00, marking an increase from the previous target of INR1,900.00. Alongside the price target adjustment, Bharti Airtel continues to hold an Outperform rating.
The endorsement comes amid a period characterized by volatile market conditions, where Bharti Airtel is seen as a defensive play. Bernstein analysts highlighted the company’s strong performance, noting significant gains in both subscriber and revenue market share. The growth is not limited to these areas, as Bharti Airtel has also seen accelerating growth in its Home segment.
The positive outlook is further supported by Bharti Airtel’s strengthening balance sheet and a rising dividend payout. These factors are bolstered by the company’s robust generation of free cash flow. The analysts’ decision to raise the price target reflects a potential upside of 12.3%, as stated in their commentary on the stock.
In their remarks, the Bernstein analysts underscored Bharti Airtel’s status as their top pick within the telecom sector. They cited the company’s strong execution and strategic positioning as key drivers for the optimistic assessment. The raised price target is indicative of the analysts’ expectation that Bharti Airtel will continue to perform well and deliver value to its shareholders.
In other recent news, Bharti Airtel Ltd has reported a strong quarterly performance, with notable increases in both subscriber numbers and revenue. The company achieved a 5% quarter-over-quarter rise in Average Revenue Per User (ARPU) to INR 245, surpassing expectations and outpacing its competitor Jio. Bharti Airtel’s wireless subscriber base grew by 4.9 million, reaching a total of 356.6 million, while mobile revenue saw a 5.8% increase. Furthermore, the company’s EBITDA margins improved to 58.8%, marking a 170 basis points enhancement from the previous quarter.
In addition to its financial performance, Bharti Airtel has announced a new partnership with SpaceX to offer Starlink’s satellite communication services in India, pending regulatory approval. This move complements its existing agreement with Eutelsat Oneweb, showcasing a strategic expansion into satellite communications. Citi has reiterated its Buy rating on Bharti Airtel, maintaining a price target of INR1,920, citing potential positive outcomes from these partnerships. Meanwhile, Bernstein has reaffirmed an Outperform rating with a price target of INR1,770, highlighting the company’s robust free cash flow and reduced capital expenditures. These developments indicate Bharti Airtel’s proactive approach in broadening its service offerings and strengthening its market position.
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