Six reasons why Citi expects Bharti Airtel to outperform over next 12-18 months

Following an about 11% year-to-date correction, shares of Bharti Airtel Ltd. are seen as well placed to outperform over the next 6 to 12 months, according to Citi.Citi has maintained its ‘buy’ rating on the stock, while trimming its price target by 8% to ₹2,180 from ₹2,380. Despite the cut, the revised target still implies an upside of around 18% from current levels.

The brokerage attributes its constructive view to several factors. It expects tariff hikes to be deferred to the December quarter, which has led to a modest 2% cut in its FY27 EBITDA estimates. However, it believes the impact is already reflected in valuations.
Subscriber momentum continues to remain strong, and ongoing capital raising, including the recent rights issue and potential data centre equity infusion, is expected to support further deleveraging.
Citi also expects a dividend of ₹17 per share to be announced alongside the March quarter results and does not see an imminent promoter stake sale.It added that the recent stock correction, partly triggered by concerns around the company’s NBFC foray in February, appears overdone.

Separately, Kotak Institutional Equities has upgraded the stock to ‘add’ with a price target of ₹2,250.

The brokerage said resilient performance in the wireless business, supported by gradual market share gains and expectations of a near-term increase in average revenue per user.

Street sentiment remains positive, with 27 out of 31 analysts maintaining a ‘buy’ rating, one recommending ‘hold’ and three suggesting ‘sell’.

The stock was last trading 2.17% higher at ₹1,885.50 and remains down about 11% so far this year.