Vodafone Idea Stock Jumps 5% on UBS Upgrade

- Vodafone Idea (Vi) shares surged nearly 10 percent on May 24 following upgrade by UBS. - At 9:30 am, Vi shares were trading 5 percent higher at₹14.75 on NSE.

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- UBS upgraded Vi from 'Neutral' to 'Buy', raising target price from₹13.10 to₹18. - brokerage sees potential 70-80 percent rally in Vi stock ahead.

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- UBS anticipates relief measures like AGR reduction or equity conversion due to government's objective of maintaining three viable private telcos. - target price of₹18 is based on 50 percent probability of AGR dues waiver.

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- Analysts believe that 50-75 percent of AGR dues could be waived for Vi. - Complete waiver of AGR dues could raise DCF value to₹24 per share, compared to₹12 without waivers.

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- Vi's annual government payments will be over $5 billion from FY26 onwards, including $2 billion for AGR & $3 billion for spectrum. - UBS highlights Vi's leverage to potential relief, suggesting attractive risk-reward ratio.

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- Stock market anticipates 15-20 percent mobile price increase in next 1-2 years. - Vodafone Idea follow-on public offer (FPO) is closing soon, with Bharti Airtel & Reliance Jio focusing on ROIC over market share gains.

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- UBS maintains 'Neutral' ratings on Bharti Airtel & Indus Towers but increases their target prices. - Bharti Airtel's target price is raised to₹1,430 from₹1,310. - Indus Towers' target price is increased to₹355 from₹220.

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Vodafone Idea Stock Jumps 5% on UBS Upgrade

- Vodafone Idea (Vi) shares surged nearly 10 percent on May 24 following upgrade by UBS. - At 9:30 am, Vi shares were trading 5 percent higher at₹14.75 on NSE.

Share Surge

- UBS upgraded Vi from 'Neutral' to 'Buy', raising target price from₹13.10 to₹18. - brokerage sees potential 70-80 percent rally in Vi stock ahead.

UBS Upgrade

- UBS anticipates relief measures like AGR reduction or equity conversion due to government's objective of maintaining three viable private telcos. - target price of₹18 is based on 50 percent probability of AGR dues waiver.

Potential Relief Measures

- Analysts believe that 50-75 percent of AGR dues could be waived for Vi. - Complete waiver of AGR dues could raise DCF value to₹24 per share, compared to₹12 without waivers.

AGR Dues Impact

- Vi's annual government payments will be over $5 billion from FY26 onwards, including $2 billion for AGR & $3 billion for spectrum. - UBS highlights Vi's leverage to potential relief, suggesting attractive risk-reward ratio.

Financial Projections

- Stock market anticipates 15-20 percent mobile price increase in next 1-2 years. - Vodafone Idea follow-on public offer (FPO) is closing soon, with Bharti Airtel & Reliance Jio focusing on ROIC over market share gains.

Market Expectations

- UBS maintains 'Neutral' ratings on Bharti Airtel & Indus Towers but increases their target prices. - Bharti Airtel's target price is raised to₹1,430 from₹1,310. - Indus Towers' target price is increased to₹355 from₹220.

Other Ratings & Target Prices

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