JP Morgan Upgrades Bharti Airtel Ltd. (BRTI) to 'Overweight' on Strong Earnings Potential"

JP Morgan analysts have upgraded Bharti Airtel Ltd. (NS:BRTI) to an "overweight" rating and raised their price target on the telecom operator, citing expectations of stronger earnings potential driven by increased tariffs in India and improved returns on capital.

The upgrade from JP Morgan includes a shift in the stock's rating from "neutral" to "overweight," accompanied by a price target increase to 1,500 rupees from 1,100 rupees, indicating a potential upside of nearly 12% from the current levels.

Bharti Airtel's fiscal 2024 earnings were largely in line with expectations, with a 2% increase in quarterly revenue to 221 billion rupees and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rising to 122 billion rupees, resulting in annual EBITDA of 790.45 billion rupees.

JP Morgan analysts anticipate a 9% increase in EBITDA for fiscal 2025 and a 14% rise in fiscal 2026, driven by higher average revenue per user and a projected 25% tariff hike in the upcoming year.

Additionally, the analysts expect dividends from Bharti Airtel to increase significantly over the next two fiscal years due to improving cash flows and continued deleveraging efforts.

Reacting to Airtel's Q4 earnings, other brokerages also expressed positive sentiments. Citi reiterated its "buy" rating with a target price of 1,520 rupees, while HSBC maintained a "hold" rating and slightly raised its target price to 1,220 rupees from 1,125 rupees.

On Thursday, shares of Bharti Airtel rose by 2.4% to 1,340.65 rupees, reflecting the positive market sentiment following the upgrade and favorable earnings outlook.

Explore the latest price targets for Bharti Airtel Ltd. here!