Jefferies has underperform rating on Bharti Infratel, target price Rs 130

Jefferies has maintained underperform rating on Bharti Infratel with a target price of Rs 130 (Rs 140 earlier). Bharti Infratel’s fourth quarter (4QFY20) results disappointed with revenues, Ebitda and profits missing estimates. While gross tenancy additions picked up, tenancy growth remained muted and this along with high tower growth will impact profitability. Further delays in merger, despite all approvals may lead to some renegotiation in merger terms.

The brokerage cut its estimates by 1-4% and lowered its target to Rs 130/ share.

The share price moved down by -3.64% from its previous close of Rs 166.10. The last traded price is Rs 160.05. Incorporated in 2006, Bharti Infratel has a market cap of Rs 30731.24 crore.