Morgan Stanley ups Bharti Airtel target by 20% on potential tariff hike in Q1 FY27

Shares of Bharti Airtel Ltd. are expected to be in focus on Tuesday, December 16, after global brokerage firm Morgan Stanley raised its price target on the stock.

Morgan Stanley currently has an 'Overweight' rating on Bharti Airtel and has increased its price target by 20% to ₹2,435 per share from ₹2,035 earlier. The revised target suggests a potential upside of nearly 18% from the stock's current levels.

The brokerage said it expects the ongoing industry repair phase in the Indian telecom sector to continue in the near term.

Looking at the medium term, Morgan Stanley mentioned several levers for organic growth, particularly in average revenue per user. The brokerage expects average revenue per user growth to reach mid single digit levels, which should translate into double digit growth in earnings before interest, tax, depreciation, and amortisation for Bharti Airtel's India business.

The brokerage also expects a sustained improvement in Bharti Airtel's return ratios, with return metrics likely to move above 20%.

Morgan Stanley further said that it expects a tariff hike in the first quarter of financial year 2027. According to the brokerage, the stock is likely to start factoring in expectations of higher tariffs over the coming months, even ahead of the actual hike.

Among the 32 analysts currently tracking Bharti Airtel, 25 continue to maintain a 'Buy' rating on the stock, while two analysts have a 'Hold' recommendation. Five analysts, meanwhile, have a 'Sell' rating.

Shares of Bharti Airtel Ltd. ended 0.55% lower on Monday at ₹2,072. The stock has gained 30% so far in 2025.

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