HomeChina Stock News Merrill Lynch starts rating China Telecom at “sell”, China Netcom at “neutral”
Merrill Lynch starts rating China Telecom at “sell”, China Netcom at “neutral”
Written by Administrator
Monday, 10 December 2007
BEIJING, Dec. 6 (InfoChina) – Merrill Lynch gives its first-ever rating on China Telecom Ltd. (0728.HK; CHA.NYSE) at “sell”, claiming that its 2008 PE of 19.2 is 27 percent higher than average of regional integrated operators.
Merrill Lynch suggests investors take profit as current price has factored in potential benefits related to industry restructuring, and deems that the restructuring will come a long time later.
Meanwhile, Merrill Lynch rates China Netcom Ltd. (0906.HK, CN.NYSE) at “neutral”, saying that China Netcom faces more severe deterioration of its fixed-line business.
The investment bank didn’t give target prices on China Telecom and China Netcom.(Edited by Chen Dongyi,
)
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