Bharti Infratel gains 3%, CLSA maintains buy with target Rs 490
Shares of Bharti Infratel gained 3.3 percent intraday Monday as CLSA maintained buy rating on the stock with a target of Rs 490.
The global research firm said that over FY17-20, it forecasts the company’s EBITDA at 9 percent CAGR. It expects the firm to deliver 5 percent CAGR in tenancies.
According to the firm, the exit of smaller operators and slowdown in Reliance Jio’s rollout to impact tenancy growth. However, every 1 percent hit to tenancy estimates to impact FY19-20 revenue and EBITDA estimates by 0.6-1.4 percent.
With Bharti Infratel’s first right of refusal, an Infratel-Indus deal is inevitable and Indus’ EV of USD 12 billion is going to boost company’s own valuation by 10 percent, it added.
The share rose 26.7 percent in the last 9-month.
At 10:45 hrs Bharti Infratel was quoting at Rs 391.85, up Rs 11.55, or 3.04 percent.
Posted by Rakesh Patil