Bet on tariff hikes! Jefferies upgrades Airtel to ‘buy’, sees 16% upside potential

Bharti Airtel is expected to benefit from an improving tariff outlook and a probable duopoly in the telecom sector. The company has seen significant market share improvement among its 4G user base and the share gains are likely to accelerate in 5G rollout. Jefferies has upgraded Bharti Airtel to “buy” with an upside potential of 16% from the current levels on expectations that hikes in voice tariffs and improving tariff outlook should aid the telco.