[ET Net News Agency, 19 October 2018] UBS Global Research raised its target price for
China Mobile (CM)(00941) to HK$94 from HK$92, and maintained its "buy" rating.
The research house estimated the market is only factoring in 1-2% annual net profit
growth for the next two years and the company has sufficient profit buffer to weather
revenue headwinds. UBS expects an inflection point in CM's mobile market share trends
driven by its recent price actions.
It expects CM to receive the 2.6GHz spectrum band as the need to speed up 5G build-out
is likely to override immediate competition concerns.
Even with the recent share price appreciation, CM is still trading 8% below its
historical PE relative to the HSI, UBS noted. (KL)