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Morgan Stanley starts Bharti Infratel at 'overweight'

Morgan Stanley initiated coverage on Bharti Infratel with an 'overweight' rating and a target price of Rs 255.

The investment bank says the mobile tower operator will benefit from increased wireless data traffic growth, as well as a healthy balance sheet, especially as operators extend 3G services.

Bharti Infratel also has positive free cash flow and balance sheets, as well as "attractive valuations".

Bharti Infratel shares were up 0.7 per cent at Rs 206.73. That was down 10.3 per cent from its IPO price of Rs 220 for funds and wealthy investors, who received the majority of the allocation. Bharti Infratel sold shares to retail investors at Rs 210 and to cornerstone investors at Rs 230.


Copyright Thomson Reuters 2013