₹₹₹₹BoFA Securities has upgraded its stance on Vodafone Idea (Vi) to neutral and set a target price of14.5 per share.
BoFA Securities expresses optimism regarding the telecom sector's near-term momentum.BoFA Securities also raised target prices for Reliance Industries Limited (RIL), Bharti Airtel, and Indus Towers, indicating a bullish sentiment in the sector.
Indus Tower's target price has been raised to410, Bharti Airtel's to1,430, and RIL's to3,340.According to BoFA Securities, the telecom sector is set for significant growth.
It suggests that the sector is poised for substantial growth and investment opportunities in the coming months.
Investors are advised to monitor developments in the telecom sector for potential opportunities closely.
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BoFA Securities has upgraded its stance on Vodafone Idea (Vi) to neutral and set a target price of14.5 per share. BoFA Securities expresses optimism regarding the telecom sector's near-term momentum.BoFA Securities also raised target prices for Reliance Industries Limited (RIL), Bharti Airtel, and Indus Towers, indicating a bullish sentiment in the sector. Indus Tower's target price has been raised to410, Bharti Airtel's to1,430, and RIL's to3,340.According to BoFA Securities, the telecom sector is set for significant growth. BoFA Securities estimates the magnitude of the expected tariff hike to be higher at 20-25%, compared to the previous expectation of 10-15%, which is likely to aid the growth.Telcos are also expected to witness improving cash flows following the tariff hikes. These cash flows could be utilised to expand high-margin fibre broadband, enterprise, and data-center offerings. BOFA Sec also indicates that no telco is currently keen on disrupting the market dynamics, suggesting a more stable environment for growth and investment.One of the key events to watch out for in the sector, as highlighted by BOFA Securities, is the potential IPO of RIL’s telecom business Jio. As stated by RIL management in the past, the visibility of this IPO is considered a significant factor for the telecom sector's future.This upgrade and the bullish outlook on Vi, along with the raised target prices for major players in the sector, are indicative of growing investor confidence in the telecom industry. It suggests that the sector is poised for substantial growth and investment opportunities in the coming months. Investors are advised to monitor developments in the telecom sector for potential opportunities closely.
