Morgan Stanley lifts ratings on China Telecom, China Netcom
Morgan Stanley newly lifted its rating on China Telecom and China Netcom from “underweight” to “neutral” respectively, saying their prices will go up, thanks to the anticipation for China’s telecom industry reshuffle.
The investment bank said the discussion about the reshuffle will be promoted in the first quarter of 2008.
It also predicted that China Netcom will enter into the mobile market by merging China Unicom’s GSM network, and see more than expected additional broadband users this year, both of which are driving forces to its share price.
As for China Telecom, Morgan Stanley said it may also benefit from the reshuffle and is driven up by its liquidity.
Tags: China-Netcom, China-Telecom, GSM