India's Indus Towers falls after Goldman Sachs says 'sell'

Indus Towers

06/09/2024 08:47

** Indus Towers  INUS.NS  drop 3.4% to 428.3 rupees after
Goldman Sachs cuts to 'sell' on disconnect between fundamentals
and valuations
    ** GS sets 350 rupees PT, nearly 20% lower than last close
    ** Says re-rating on the telecom tower firm was "overdone"
as client Vodafone Idea's  VODA.NS  market share erosion and
cash flow pressures will continue
    ** Says "premature" of market to price in upside to telecom
companies' capex from potential cut in spectrum dues and gains
from reported likely merger of Indus with client Bharti Airtel's
 BRTI.NS  data center business
    ** 19 analysts' mean recommendation on INUS is equivalent of
"hold"; median PT is 375 rupees -LSEG data
    ** INUS shares have surged 114% YTD, while BRTI has risen
49% and VODA has shed 15%

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))