Nomura has upgraded Vodafone Idea (NSE: IDEA) to a ‘buy’ with a target price of ₹15, stating that the worst is now behind the company. The brokerage firm highlights that the AGR overhang has concluded and views the recent sharp correction in stock price as an opportunity, given the strong industry outlook.
Nomura also notes that government support could significantly ease Vodafone Idea’s funding gap. The firm maintains its estimates, which include a projected 12% ARPU hike and slowing subscriber loss trends for the company over FY25-26. Nomura expects a modest recovery in FY27, with potential upside risks.
As a result, Vodafone Idea’s EBITDA is projected to grow at a 15% CAGR between FY24 and FY27, according to Nomura’s forecast.
Yesterday, Vodafone Idea’s stock closed at ₹10.44, dropping by ₹2.46 (a decline of 19.07%) following the Supreme Court’s decision to hold its verdict on the company’s adjusted gross revenue (AGR) dues.
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