Bank of America (BoFA) has maintained its ‘Buy’ rating on Reliance Industries (RIL) but has cut its target price to ₹1,550 from ₹1,723, highlighting valuation concerns despite strong business fundamentals.
BoFA remains optimistic about Reliance’s telecom and retail segments, citing momentum in retail business uptake and value-unlocking catalysts in Jio or retail as key triggers for future growth. The brokerage also noted that Reliance Jio’s 5G capital expenditure cycle is largely complete, setting the stage for improved free cash flow in the telecom business.
However, despite these positives, the firm sees limited near-term upside due to valuation constraints, leading to the downward revision of its target price. Investors are advised to monitor catalysts in the telecom and retail segments for further potential re-rating of the stock.
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