UPDATE: JP Morgan Downgrades China Mobile Limited to Underweight on LTE Ownership Change Downside
JP Morgan downgraded China Mobile Limited (NYSE: CHL) from Neutral to Underweight.
JP Morgan said, "We downgrade CM to Underweight from Neutral, as we expect a very likely ownership change of CM's TD-LTE network/capex from parentco to listco will be more negative than what the market has understood. The announcement will be made in March 2013 at the results briefing. Should this happen (90% probability in our view), it would imply a 6%/10% downside to CM's 2013E/2014E earnings based on our forecasts, vs. the Street's estimate of only 1-2%. We expect CM to post the first-ever negative yoy earnings change in 2013E."
China Mobile Limited closed at $55.64 on Wednesday.
Latest Ratings for CHL
|Mar 2015||Morgan Stanley||Downgrades||Overweight||Equalweight|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.