Bharti Airtel stock is ‘top pick’ for RBS

RBS has initiated coverage on India’s telecom sector with ‘buy’ on Bharti Airtel and Idea stocks and ‘hold’ on Reliance Communications.

Sector revenues will double in the next five years with relative price stability,growing penetration and broadband usage,RBS said in a note,with revenue is significantly below other developed and developing markets,underpinning growth prospects. Top pick Bharti Airtel’s target price is target of 475 rupees while Idea’s 121 rupees.

Reliance Communications has a ‘hold’ with a target of 67 rupees. RBS expects Bharti to maintain its leadership position and sees Idea and Vodafone India gaining market share.

At 1.16 p.m. shares of Bharti,Idea and Reliance Communications were trading down 0.6-2.2 percent.

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