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Investing.com - Jefferies has upgraded Indus Towers Ltd (NS:INDUSTOW) from Underperform to Hold, maintaining a price target of INR345.00.
The upgrade follows Indus Towers’ first-quarter results, which Jefferies describes as "in line" with expectations, though the firm notes weak tenancy additions and the absence of a dividend announcement as negative surprises.
Jefferies has raised its FY26-28 earnings per share estimates for Indus Towers by 1-3%, factoring in lower dividend payout expectations, and projects a 6% compound annual growth rate in EBITDA and profits over the FY25-28 period.
The research firm indicates that muted growth prospects, risks related to Vodafone (NASDAQ:VOD) Idea’s network rollouts, and uncertainty surrounding dividends are likely to limit upside potential for the stock.
Despite these concerns, Jefferies believes downside risk is limited at the current 6% free cash flow yield, supporting the Hold rating with an unchanged price target of INR345, which implies a 6% dividend yield.
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