Vodafone Idea shares surge 6% on UBS rating upgrade and record biggest turnover

Vodafone Idea shares: In early Friday trading, Vodafone Idea shares increased by more than 6% following a stock upgrade from “Neutral” to “Buy” by international brokerage UBS. After first setting its target price at Rs 13.10, UBS increased it to Rs 18. Today’s morning session saw a 6.64% boom inside the telecom stock. The company’s market value increased to Rs 99,525 crore. A total of 1443.24 lakh of the company’s shares were traded on the BSE, generating a turnover of Rs 212.27 crore.

Technically speaking, Vodafone Idea’s relative strength indicator (RSI) is 61.3, indicating that it is not trading in the overbought or oversold regions. The one-year beta of Vodafone Idea’s stock is 1.1, suggesting significant volatility throughout that time. The 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages are all being exceeded by the price of Vodafone Idea shares.

The stock reached its highest point in the past 52 weeks at Rs 18.42 on January 1, 2024, and dropped to its lowest point at Rs 6.87 on May 25, 2023.

Also Read: Adani Enterprises stock

UBS predicts a potential increase of 70-80% in the telecom stock. The brokerage suggests that the Supreme Court may provide relief through a reduction in AGR or equity conversion, along with possible government interventions such as moratoriums. This likelihood is strengthened by the government’s clear aim of sustaining three viable private telcos.

The stock market is factoring in a potential 15-20% increase in mobile tariffs over the next 12-24 months. This anticipation coincides with the conclusion of Vodafone Idea’s follow-on public offer (FPO) and the apparent shift in focus for Bharti Airtel Ltd and Reliance towards prioritizing return on invested capital (ROIC) rather than aggressively pursuing market share gains, as highlighted by UBS.