Add Bharti Airtel, target price Rs 655: ICICI Securities

ICICI Securities has downgraded Bharti Airtel to add from buy rating with a target price of Rs 655.

Bharti Airtel’s fourth quarter (Q4FY20) print was better than expected suggesting market share gain across parameters. The brokerage remains confident of the uptrend sustaining for now. It was impressed with the quality of growth in mobile services, which has come from higher incremental market share and efficient pass-through of tariff hikes. Bharti has benefited from SIM consolidation. Contingent liabilities have been the spoiler, but most issues are now being provisioned except for complete AGR recognition pending final verdict from the Supreme Court. The EBITDA estimates have been cut by 7.8% / 0.6% for FY21E / FY22E (on realignment), but has increased the target price to Rs 655 (from Rs 610) as we increase our India EBITDA multiple to 11 times (from 10 times).