Bharti Airtel Rises on Positive 'Buy' Rating from Jefferies Amid Sunil Mittal's ARPU Growth Target

Bharti Airtel, one of India's leading telecom providers, has seen an uptick in its stock value following a favourable assessment by global investment banking firm Jefferies. The brokerage has reiterated a 'buy' rating on Bharti Airtel, placing a target price of Rs 1,300 on the stock. This optimistic stance comes amid a broader context of telecom sector revamps and aggressive strategic positioning by operators like Bharti Airtel in pursuit of higher average revenue per user (ARPU).

Analyst Views on Tariff Hikes and ARPU Growth

Analysts at Jefferies noted that the company has demonstrated a robust translation of recent tariff hikes into a growing ARPU, observing an approximate 17 percent compound annual growth rate (CAGR) compared to a 12 percent CAGR in the rest of India (ROI). Such performance underlines the efficacy of the pricing strategy adopted by Bharti Airtel and bodes well for the company's revenue trajectory, especially in light of Chairman Sunil Mittal's public target of achieving an ARPU of Rs 300.

Competitive Landscape and Vodafone's Position

While Bharti Airtel BHARTIARTL forges ahead with its growth strategy, peers such as Vodafone Group Plc VOD, known for its widespread telecommunications services across Europe and beyond, also contend within this competitive industry space. Headquartered in Newbury, the United Kingdom, Vodafone continues to navigate the challenges and opportunities presented by the global telecom market.

BhartiAirtel, Jefferies, ARPU