[ET Net News Agency, 18 January 2021] Morgan Stanley lowered its target price for China
Mobile (CM) (00941) to HK$65 from HK$80 and maintained its "overweight" rating.
The research house expects market share to remain steady in the 5G cycle. Morgan
believes the market has overlooked a potential earnings inflection driven by 5G ARPU lift.
CM is a key 5G play entering a multi-year re-rating cycle.
It forecast CM's earnings and the dividend will increase at a 3-4% 2020-23 CAGR, and it
believes the current >7% 2021 dividend yield offers downside support, while
earnings/dividend upside is not priced in at 2021 P/E of 7-8x, a 10-year trough level.
(KL)