[ET Net News Agency, 30 October 2019] Credit Suisse lowered its target price for ZTE
Corporation (00763) to HK$31 from HK$31.4 and maintained its "outperform" rating.
The research house said ZTE's 3Q results were in-line with guidance. Credit Suisse
expects 4Q sales to stay flat. It updated its estimates as per our Global Wireless Capex
model with a new wireless capex of 3%/4% growth in 2019/20 (-1%/-1% versus prior
estimates), driven by lower China telco capex on network sharing.
On 22 October, ZTE received CSRC's approval to raise a maximum of Rmb13bn through a
private placement. Credit Suisse said a potential downside of 10% is warranted upon the
closing of the placement. (KL)