Telecom operator Vodafone Idea today found another backer when global broking broking firm UBS upgraded the stock to buy with a target price of Rs 18, saying that it is expecting relief on government dues as well as a mobile price increase. Following the upgrade, the stock jumped over 5% to Rs,14.82.
"We believe the market is pricing in a 15-20% mobile price increase in the coming 12-24 months as VIL FPO comes to a close and Airtel and Jio are incentivised to prioritise ROIC over market share gains. That said, we believe relief in the form of AGR reduction by the Supreme Court or equity conversion, moratoriums etc by the Government is highly likely, especially given the Government's stated objective of ensuring three viable private telcos," UBS said.
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