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Vodafone Idea stock jumps 9%, UBS says ‘buy’ stock as 70-80% upside likely


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.

Vodaphone Idea share price: International brokerage UBS revised target price of the stock to 18 from 13.10 earlier.(AP)

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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.

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.”

It continued, “Assuming AGR dues are completely waived, our DCF value could increase to 24 per share, against 12 when there are no waivers.”



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