Hathway Cable stock gets ‘buy’ rating

Bank of America-Merrill Lynch (BofA-ML) has initiated coverage on Hathway Cable with a ‘buy’ rating and a price target of Rs 130. The largest digital cable service provider is likely to benefit from increasing use of digital cable services,regulations to digitalise cable network in India and cross-selling of broadband services to its cable TV consumers,BofA-ML said in a note. The brokerage expects EBITDA margins to expand to 25 per cent by FY13 from the current 17 per cent driven by migration of subscribers to digital services in these metros.

At 2:40 p.m.,shares were up 4 per cent at Rs 97.65.