Jefferies has upgraded its rating on Bharti Airtel to “Buy” and raised the target price to ₹1,970 per share, indicating a potential upside of 20.5% from the stock’s closing price of ₹1,634 on September 12. The revised target reflects Jefferies’ positive outlook on Bharti Airtel amidst a competitive telecom landscape.
Jefferies anticipates that increased competition from Jio and continued market share losses by Vodafone Idea (VIL) may prompt several tariff hikes in the coming years. Consequently, the brokerage has raised its FY26 and FY27 India revenue and EBITDA estimates by 5-9%, incorporating a projected 10% tariff increase in mid-FY26 in addition to the 10% hike previously modeled for 2QFY27.
The brokerage believes that Bharti Airtel is expected to deliver a strong 19% EBITDA compound annual growth rate (CAGR) over FY24-27, alongside lower capital expenditures, which should support a 23% CAGR in free cash flow to equity (FCFE) and drive substantial stock returns.
