Brokerage firm Jefferies has upgraded the rating of Bharti Hexacom Ltd shares to Buy. Following this news, the stock today soared 10% to a 52-week high of Rs 1453.95. This upgrade comes three months after the brokerage downgraded the stock to “Hold” in June, citing expensive valuations and the rally seen in the stock after the IPO.
Target price also increased from ₹1,260 to ₹1,600
According to CNBC Awaaz TV18, Jefferies has now upgraded the stock’s rating to “Buy” again. It has also raised its target price from ₹1,260 to ₹1,600. The brokerage wrote in its note that Reliance Jio’s increasing focus on its growth and Vodafone Idea’s continued market share loss may necessitate multiple tariff hikes over the next few years. Consequently, Jefferies has raised Bharti Hexacom’s earnings before EBITDA forecast by 5% and 12% for fiscal 2026 and 2027, respectively. It is now dealing with another 10% tariff hike in mid-fiscal 2026. This is in addition to the 10% hike already planned for the second quarter of fiscal 2027.
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Brokerage firm Jefferies has upgraded the rating of Bharti Hexacom Ltd shares to Buy. Following this news, the stock today soared 10% to a 52-week high of Rs 1453.95. This upgrade comes three months after the brokerage downgraded the stock to “Hold” in June, citing expensive valuations and the rally seen in the stock after the IPO.
Target price also increased from ₹1,260 to ₹1,600
According to CNBC Awaaz TV18, Jefferies has now upgraded the stock’s rating to “Buy” again. It has also raised its target price from ₹1,260 to ₹1,600. The brokerage wrote in its note that Reliance Jio’s increasing focus on its growth and Vodafone Idea’s continued market share loss may necessitate multiple tariff hikes over the next few years. Consequently, Jefferies has raised Bharti Hexacom’s earnings before EBITDA forecast by 5% and 12% for fiscal 2026 and 2027, respectively. It is now dealing with another 10% tariff hike in mid-fiscal 2026. This is in addition to the 10% hike already planned for the second quarter of fiscal 2027.
Jefferies now also expects Bharti Hexacom’s valuation premium to persist, as it expects its EBITDA and free cash flow to grow at a compound annual growth rate (CAGR) of 25% and 66% over fiscal years 2024 to 2027, compared to Bharti Airtel.
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