Bharti Hexacom shares jump 13% to fresh record highs after Citi initiates buyout and Jefferies raises targets

Bharti Hexacom On Friday, Citi shares surged 13 per cent on the NSE and hit a fresh 52-week high of Rs 1,453.95 after US brokerage Jefferies upgraded the stock to ‘Buy’ from an earlier ‘Hold’ view, while raising its target price to Rs 1,600 from Rs 1,260. Meanwhile, Citi also initiated a buy on the market with a target price of Rs 1,405.

Jefferies in a note called the company promoted by Bharti Airtel the “best bet” on tariff hikes.

Reliance Jio Infocomm’s increasing focus on growth and market share losses to Vodafone Ideas may require multiple tariff hikes in the coming years, the brokerage noted.

It also raised fiscal 2026/27 revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) estimates by 5% to 12%.

Jefferies said it expects a 10% tariff increase by mid-fiscal 2026, on top of the 10% increase it had modeled in the second quarter of fiscal 2027.

In its note, Citi said Bharti Hexacom is an attractive mid-cap telecom operator with a solid growth outlook. Echoing a similar sentiment, Citi said Bharti Hexacom had a better chance of future tariff hikes. It also highlighted a solid growth outlook, a strong balance sheet and superior profitability ratios for the company.

The stock was listed on April 12, 2024 and has gained 69% since then. It has gained 155% from the issue price of Rs 570.

Read also: Fed Factor: Rate cut theory suggests higher equity valuations, but history tells a different story

(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of Economic Times)



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