On Tuesday, Bharti Airtel Ltd (BHARTI:IN) saw its price target increased to INR1,760 from INR1,740 by Jefferies, while the firm maintained a Buy rating on the stock. The adjustment follows Bharti Airtel's first-quarter results, which showcased strong performance, particularly in the mobile and homes segments, as well as better-than-expected free cash flow generation.
The company's steady quarterly outcomes have been underpinned by robust growth prospects in the Indian mobile and homes markets. Despite the positive results, Jefferies slightly lowered its consolidated revenue and EBITDA estimates by 1-3%. This revision takes into account the potential impact of SIM consolidation and a weaker performance in Bharti Airtel's Enterprise and Africa segments.
Jefferies highlighted Bharti Airtel's expected compound annual growth rate (CAGR) of 14-16% in Indian revenue and EBITDA. This growth, alongside a moderation in capital expenditures, is anticipated to facilitate the company's deleveraging process. Bharti Airtel is projected to reduce its debt by approximately $9 billion over the fiscal years 2025 to 2027.
The analyst's commentary accompanying the price target adjustment emphasized the company's solid quarterly performance and positive cash flow generation. Despite the minor adjustments to revenue and EBITDA estimates, Jefferies' outlook for Bharti Airtel remains optimistic, as reflected in the maintained Buy rating and the slightly increased price target.
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