On Friday, Goldman Sachs increased its price target for Bharti Airtel Ltd (BHARTI:IN), a leading telecommunications services company, to INR1,700 from INR990, while reiterating a Buy rating on the stock. The firm's decision comes in light of Bharti Airtel's strong performance relative to its competitors in recent times.
Bharti Airtel has been outpacing its peers in wireless revenue growth and has captured approximately 2.5% of revenue market share over the past two years. Goldman Sachs predicts that Bharti Airtel will continue to see growth due to a combination of market share gains, organic growth opportunities, and anticipated tariff increases.
The firm anticipates that Bharti Airtel will secure an additional 2% market share over the next three years. This growth is expected to be supported by various organic growth levers, including the expansion of 4G services, the postpaid segment, and other areas. Moreover, Goldman Sachs forecasts that the company's revenues in India will grow at a compound annual growth rate (CAGR) of 16% from fiscal year 2024 to 2027, while at the consolidated level, the CAGR is projected to be 14%.
The analysis further projects that Bharti Airtel's EBITDA (earnings before interest, taxes, depreciation, and amortization) will grow at a 21% CAGR during the same period at the India level, and 17% at the consolidated level. This optimistic outlook is also based on expectations of future tariff hikes, with the next increase predicted for fiscal year 2026.
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