Indus Towers surged in trade on Friday and closed 13 percent higher after a positive upgrade from Jefferies. It is noteworthy that CLSA had also initiated a similar action earlier this week. In this week the stock is up 18 percent.
The Jefferies note on Indus Towers has upgraded the stock to a buy and has also raised the target price to Rs 310. The key reason for this upgrade is that the brokerage believes that the government's recent reforms lift the key overhang on the company’s tenancy.
Moreover, the 5G capex plan from Bharti Airtel signals normalcy is coming back for the Indus Towers’ core business. Jefferies has raised their FY23 and FY24 EBITDA estimates by 2 to 5 percent and they believe that despite the recent up move, the stock is trading at an attractive valuation of 6.50 times EV-EBITDA.
CLSA has raised the target price on Indus Towers to Rs 310.
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