Bharti Airtel shares dropped to a two-year low,extending a rout after banks including Goldman Sachs and Standard Chartered downgraded their ratings for India’s top telecoms carrier following its poor earnings results this week.
Goldman Sachs downgraded the stock to neutral from buy with a revised target price of 270 rupees,saying it expected weak operational momentum in India and Africa,and adding Bharti could maintain or regain market share at the expense of profitability.
Standard Chartered cut Bharti to in-line from outperform and cut its target price to 300 rupees from 380 rupees,saying the recent delay in the 2G spectrum auction will pressure profitability,among other risk factors.
Bharti Airtel shares were last down 4.25 percent,after earlier hitting a session low of 261.40 rupees,its lowest since July 1,2010. Shares of the carrier had already fallen 6.6 percent on Wednesday after its poor April-June results.