Vodafone Idea shares jump 7.5% on global broking firm UBS upgrade

A ‘likely’ relief on the government dues front for Vodafone Idea (VIL) and expectations of telecom tariff hikes could drive the share prices up by 70-80 per cent, global broking firm UBS said in a report. It has upgraded the stock to buy with a target price (TP) of Rs 18.

“Assuming AGR (adjusted gross revenue) dues are completely waived off, our DCF (discounted cash flow) value could increase to Rs 24 per share, versus Rs 12 when there is no waiver. Our TP of Rs 18 is based on a 50 per cent probability of AGR dues waiver,” the report said.