ICICI Securities has upgraded its rating on Bharti Airtel to BUY from ADD, with a target price of Rs 1,875.
Bharti's EV/EBITDA valuation for FY26E is 11.3x, significantly higher than the median of 7.1x for APAC peers, excluding China.
Despite this premium, Bharti is projected to achieve a robust EBITDA CAGR of 14.8% over the next two years, compared to just 4.5% for its regional counterparts.
Bharti also has a favorable free cash flow yield of 6.7% for FY26E, which is competitive against the 6% yield of APAC peers.
The report highlights a recovery in five key parameters influencing telecom valuations, suggesting that Bharti's valuation may have further upside potential.