Bharti Airtel share price continues to gain amid tariff change; brokerages give buy call, check target price here

As Bharti Airtel revises the entry-level prices of its plan, the majority of the brokerages being bullish on telecom major, have maintained a 'buy' rating on the stock. Airtel through a statement on Wednesday announced a revision in its entry-level plans to Rs 79 from Rs 49 earlier.

The telecom major in a filing to BSE said, “Airtel has discontinued its Rs 49 entry-level Prepaid recharge. The Company’s Prepaid packs will now start from the Rs 79 Smart Recharge and offer up to four times more outgoing minutes of usage to customers along with double data.”

Airtel shares continued to surge on the second consecutive day and became the top gainers by over 1 per cent touching a day’s high of Rs 575 per share in the market open today. The stock yesterday ended over 5 per cent higher and has surged around 10 per cent in the month period.

Being bullish on the counter, Citi says, yesterday’s hike could provide a further 2 per cent benefit to Bharti Airtel’s mobile revenue. The brokerage maintained a Buy rating with a price target of Rs 660 per share and estimates this segment contributes 5 per cent to the company’s overall mobile revenues.

Airtel’s plan tweaks will lead to over 3/6 per cent wireless revenue/EBITDA, Goldman Sachs says, while maintaining a Buy stance on the stock and expects the shares to grow Rs 665 per share. The brokerage says tariff hike is the most significant catalyst since 2019 and others may follow this suit.

Also maintaining a Buy rating, UBS says Airtel’s plan tweaks to increase average revenue per user continue, expect Vodafone Idea to follow this in tweaking plans. It mentions 4 per cent upside to revenues in an optimistic scenario and sets a price target of Rs 655 per share.