Jefferies raises Bharti Airtel price target to INR2,210

On Wednesday, Jefferies analyst Akshat Agarwal increased the price target on Bharti Airtel (NSE:BRTI) Ltd (BHARTI:IN) stock to INR2,210 from INR2,030, while reaffirming a Buy rating on the shares. Agarwal highlighted the company’s fourth-quarter results, which surpassed estimates due to strong average revenue per user (Arpu) growth, subscriber additions, robust margins, and a significant increase in dividends.

Bharti Airtel’s performance in the fourth quarter was noted for its continued addition of subscribers following tariff hikes, which Agarwal believes signals a positive outlook for future tariffs. The analyst’s optimism is further backed by an adjustment in Ebitda estimates for the company’s operations in India, which are now approximately 3% higher.

Agarwal expects Bharti Airtel to achieve a compound annual growth rate (CAGR) of 15% for revenues and 18% for Ebitda in India (excluding tower revenue) over the fiscal years 2025 to 2028. The revised price target of INR2,210 reflects this positive trajectory.

The analyst’s comments came after Bharti Airtel’s fourth-quarter financial results, which showcased the company’s ability to grow and maintain profitability. The strong Arpu growth and subscriber additions were key factors contributing to the company’s performance, alongside the healthy profit margins and the sharp rise in dividends paid out to shareholders.

Bharti Airtel’s strategy of tariff hikes has been met with a favorable response from the market, as evidenced by the continued growth in its subscriber base. This trend is a positive indicator for the company’s revenue prospects going forward.

In summary, Jefferies maintains a strong conviction in Bharti Airtel’s growth potential, as reflected in the raised price target and the reiterated Buy rating. The company’s recent financial outcomes and strategic moves are expected to drive its revenue and Ebitda growth over the coming years.

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