[ET Net News Agency, 5 November 2018] Jefferies raised its target price for China
Mobile (CM)(00941) to HK$78.66 from HK$64.85, and maintained its "hold" rating.
The research house said CM would likely build 5G at 3.5GHz (if China Telecom and China
Unicom were to merge) versus 2.6GHz, thus incurring higher capex.
Moreover, Jefferies noted that several long-term headwinds are not yet in consensus
forecasts: (1) narrowing coverage advantage (thus price premium) as all 3 telcos share
more towers, (2) number portability potentially from 2020, and (3) either much tougher
competition from a merged Telecom/Unicom or 700MHz going to China Telecom and China
Unicom. (KL)