Vodafone Idea (VIL) Share Price Soars 4% Following UBS Upgrade to ‘Buy’

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    <li>Vodafone Idea share price jumped over 4% on Friday's session after global brokerage UBS upgraded its rating to ‘buy’ from ‘Neutral’.</li>
    <li>UBS revised its target price to ₹18 from ₹13.10 previously, citing potential relief measures for Vodafone Idea.</li>
    <li>Rajesh Bhosale, Technical Analyst at Angel One, noted the stock's gap-up opening and follow-up buying in initial trades.</li>
</ul>
<p><strong>Vodafone Idea shares soar as UBS upgrades rating to 'buy' with a target price of ₹18.</strong></p>
<h2><strong>UBS Upgrades Vodafone Idea to 'Buy'</strong></h2>
<p>In a significant move, global brokerage UBS has upgraded Vodafone Idea's rating to 'buy' from 'Neutral'. The revised target price is now set at ₹18, up from the previous ₹13.10. This upgrade has led to a notable increase in Vodafone Idea's share price, which jumped over 4% during Friday's trading session. The stock opened at an intraday low of ₹14.23 and reached an intraday high of ₹14.75 on the BSE.</p>
<h3><strong>Technical Analysis and Market Reaction</strong></h3>
<p>Rajesh Bhosale, Technical Analyst at Angel One, observed that Vodafone Idea's stock experienced a gap-up opening and is witnessing follow-up buying in the initial trades. He mentioned that if the gains persist, the stock might see further short-term upmoves, possibly towards ₹15.8. However, he cautioned that support would be around ₹14.10, below which the prices might slip back into a negative trend.</p>
<h2><strong>Potential Relief Measures and Market Outlook</strong></h2>
<p>According to UBS, there is a 70–80% chance of a Vodafone Idea rally in the near future, driven by potential relief measures such as an AGR decrease by the Supreme Court or equity conversion, along with government moratoriums. UBS highlighted the government's goal of maintaining three independent private telecom operators as a supportive factor.</p>
<h3><strong>Target Price and Forecasts</strong></h3>
<p>UBS's target price of ₹18 is based on a 50% probability that AGR dues will be waived. While there are possibilities for additional relief measures like spectrum due cancellation, postponement, or equitisation, UBS considers these less likely and has not included them in its base price target calculations. The brokerage also maintained a 'Neutral' rating on Bharti Airtel and Indus Towers, with modified forecasts for Indus, factoring in three viable private telcos for the Indian telecom sector.</p>
<h3><strong>Conclusion</strong></h3>
<p>In conclusion, UBS's upgrade of Vodafone Idea to 'buy' with a target price of ₹18 has positively impacted the stock's performance. The potential for relief measures and the government's supportive stance towards maintaining three private telecom operators provide a favorable outlook for Vodafone Idea. Investors are advised to monitor the stock closely for further developments and consult with certified experts before making any investment decisions.</p>