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Vodafone Idea stock jumps 9%, UBS says ‘buy’ stock as 70-80% upside likely
Vodafone Idea share price: UBS said, "We believe risk-reward is attractive going into any such announcement and upgrade to Buy."
Vodafone Idea share price: Shares of Vodafone Idea (Vi) rose almost 10 per cent today (May 24) after UBS upgraded the stock to a 'Buy' rating from ‘Neutral’. The international brokerage also revised target price of the stock to ₹18 from ₹13.10 earlier and said that there is a scope of a 70-80 percent rally as relief in the form of AGR reduction by the Supreme Court along with government moratoriums, is highly likely.
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"VIL is most leveraged to any such relief, yet the stock is trading at similar c1 1 times FY26e EV/Ebitda as Airtel and Jio. We believe risk-reward is attractive going into any such announcement and upgrade to Buy," it said.
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It added, “VIL's annual payment to the government will be over $5 billion from FY26 onwards including $2 billion for AGR and $3 billion for spectrum. Looking at the details of curative petition filed by telcos on the AGR case, we believe as much as 50-75 per cent of AGR dues could potentially be cancelled for VIL."
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It continued, "Assuming AGR dues are completely waived, our DCF value could increase to ₹24 per share, against ₹12 when there are no waivers.”
