Is It Time To Bet On Chinese Telecoms?
In a recently published report, Sanford C. Bernstein analyst Chris Lane upgraded the Chinese telcos sector and a couple of stocks: China Unicom (Hong Kong) Limited (ADR) (NYSE: CHU) and China Telecom Corporation Limited (ADR) (NYSE: CHA) to Outperform. Lane issued a price target of HK$16.40 for China Unicom and a target of HK$6.50 for China Telecom.
The specialist also reiterated an Outperform rating for China Mobile Ltd. (ADR) (NYSE: CHL), boosting his price target to HK$140.
In November of 2014, Sanford C. Bernstein published their Blackbook on the Chinese Telecommunication Industry. The report argued that it was "time to buy into the world's most undervalued Telco market." In the most recent note, the analysts "reaffirm this belief and expect a significant re-rating of the sector this year."
The analysts believe "the recent opening and broadening of the Hong Kong/Shanghai connect and upside from JV Tower Co, will provide significant support for the sector." In addition, they expect multiples to "re-rate towards international levels."
Shares of China Mobile were down more than 2 percent on Wednesday, while China Unicom and China Telecom were up.
Latest Ratings for CHU
Apr 2015 | Bernstein | Upgrades | Underperform | Outperform |
Apr 2015 | Deutsche Bank | Upgrades | Hold | Buy |
Mar 2015 | Jefferies | Maintains | Hold |
View More Analyst Ratings for CHU
View the Latest Analyst Ratings
See more from Benzinga
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.