Dell_20181213

Vodafone Idea Falls 4%; CLSA Recommends Sell, Cuts Target Price

Share price of telecom major Vodafone Idea fell over 4 percent intraday after global research firm CLSA initiated a Sell Rating on the stock and cut target to Rs 12.50 from Rs 27 per share. It is of the view that operating metrics looks weak with slower-than-expected data adoption.

The firm has raised FY20 EBITDA estimates by 9 percent while FY21 gearing will be uncomfortable at 6.3x EBITDA.

However, Deutsche Bank has a Buy rating on Vodafone Idea with a target at Rs 70 per share. EBITDA is ahead of estimates but revenue growth is soft, it said. The firm is of the view that results should allay some investor concerns. Operating expenses declined sequentially on realisation of merger synergies while its operating metrics compare favorably to its peers.

At 10:26 hrs Vodafone Idea Limited was quoting at Rs 13.85, down Rs 0.60, or 4.15 percent. It has touched a 52-week low of Rs 13.60.―Money Control

Share this:

Related Posts

Leave a Reply

Stay Updated on Enterprise Network and Carriers Industry.
Receive our Daily Newsletter.